Albania’s non-performing loan (NPL) ratio fell to 4% in March 2025, its lowest level in a decade, the Bank of Albania said Monday, down from 4.2% a month earlier and sharply below the 25% peak seen in 2014.
The central bank attributed the improvement to lower interest rates on loans in both domestic and foreign currencies, which have reduced monthly repayments and encouraged timely servicing of debt.
It also cited the depreciation of foreign currencies, which has eased repayment burdens for borrowers with loans denominated in euros and other currencies.
The banking sector is performing strongly, with record-high profits, the bank said. This has boosted credit supply, supporting overall economic growth.
