BREAKING NEWS

How Meta-Kryemadhi became millionaires during 30 years in politics, here are the untold stories of the couple who married in power and divorced in opposition, from the luxurious villa with 11 toilets, the palm trees that were brought by helicopter, the...

How Meta-Kryemadhi became millionaires during 30 years in politics, here are the
x
BREAKING NEWS

SPAK issues 19 arrest warrants for Tirana's incinerator, the list includes high-ranking officials, politicians, media leaders and their families, the details of the big operation are disclosed

SPAK issues 19 arrest warrants for Tirana's incinerator, the list includes
x
BREAKING NEWS

Does the UDB agency connect Sali Berisha and Baton Haxhiu, this is how the former prime minister defended the analyst for the villa in Golem who is being investigated by SPAK and "swallowed" all the slanderous accusations that they have exchanged with ...

Does the UDB agency connect Sali Berisha and Baton Haxhiu, this is how the
x
BREAKING NEWS

Sali Berisha did not have a mandate according to the Constitution, the head of the DP makes way for Argita and prepares to crown his daughter on the throne with the July 12 protest, Gaz Bardhi ends up as a "squeezed lemon"

Sali Berisha did not have a mandate according to the Constitution, the head of
x
BREAKING NEWS

The incinerators' money guarantees Arben Ahmetaj's life on the run, here are the transfers of hundreds of thousands of euros by Albanian taxpayers to Swiss offshores, SPAK reveals that the businessman who is helping him in Lugano is accused of money la...

The incinerators' money guarantees Arben Ahmetaj's life on the run,
x
BREAKING NEWS

Belinda Balluku "mountain" with reports to SPAK, here are all the scandals in which the deputy prime minister is involved, from investigations into incinerators, corrupt tenders, contracts, privatizations and up to scandalous firms for giving public lands

Belinda Balluku "mountain" with reports to SPAK, here are all the
x
BREAKING NEWS

Strong developments within SPAK, the prosecutors extend the investigation deadlines for Arben Ahmetaj by 3 months and send summons to the oligarch who is accused of money laundering

Strong developments within SPAK, the prosecutors extend the investigation
x
BREAKING NEWS

Spartak Ngjela reveals the "bombastic" behind-the-scenes: This is why the divorce of Ilir Meta and Monika Kryemadhi cannot save them from the shackles and the strong reason that DASH senior official Richard Nephew avoided meetings in Tirana with the 'R...

Spartak Ngjela reveals the "bombastic" behind-the-scenes: This is why
x

Ekonomia

BSH "closes the doors" for the microfinance of fast loans, what will happen with the new licenses?

BSH "closes the doors" for the microfinance of fast loans, what will

The Bank of Albania has decided to take a strict approach to the granting of new licenses to financial institutions for quick microcredits.

Sources from the market inform that in the last two years, several applications submitted by specific entities that relied on business plans of this type have been rejected by the Bank of Albania.

This includes foreign investors, as is the case of one of the most important microcredit entities in Bulgaria, Easy Credit.

The Bank of Albania has argued that it will not prevent the licensing of new financial lending institutions, but their business model should not rely only on fast loans, with very high interest rates.

By analogy, the central bank does not rule out granting licenses to institutions of the NOA or BESA model, which have a wider spectrum of products and individual and business clients, but it seems that it will not allow the licensing of new financial institutions of the IuteCredit model or Kredo Finance, who have built their business exclusively based on quick consumer loans.

Apparently, the Bank of Albania estimates that the further expansion of this business model, besides being associated with high risks for the lender and the borrower, does not serve the public interest.

Microfinance of fast loans has seen a rapid development in the last decade. This business model relies on taking on high risks, which in turn are compensated by small loan amounts and very high effective interest rates.

The high rates applied by institutions became the main reason that the Bank of Albania decided to apply a ceiling interest rate for consumer loans in Albania, at the beginning of the year 2022. According to the Bank of Albania, the main reason was to protect the consumer from potentially abusive interest, applied mainly by some non-bank financial institutions.

Based on the data of the Bank of Albania, effective interest rates before the entry into force of the regulation reached up to 256% for loans in small amounts and minimum maturity terms.

According to the regulation "On consumer and mortgage loans", the maximum NEI is calculated by the Bank of Albania on a six-monthly basis, based on the data of the Credit Register administered by it.

Maximum NEI levels are published at the beginning of each 6-month period and are based on loans disbursed in the previous six-month period. This indicator is constructed as the average of the effective interest rate for each product and interval, increased by one third.

The maximum NEI is mandatory to be respected by all banks and financial institutions licensed for lending activity in Albania.

However, in addition to applying a ceiling interest rate, the Bank of Albania has already imposed a tightening in this segment of the market also at the licensing level./Monitor/


 

Most read