TIRANA, June 25 (Xinhua) -- The level of non-performing loans in the Albanian banking system has recorded a further decline, falling down to a new low of 16.6 percent in April, the lowest since mid-2011, data from the Bank of Albania (BoA) showed Sunday.
According to Albania's central bank experts, the plan of measures undertaken by the BoA to reduce non-performing loans has started to yield positive results.
"Thanks to the clearing of balances on lost loans, facilitating restructuring and improvements in the process of collateral execution, the amount of non-performing loans finally appears to be on a steady decline," BoA's experts said.
Meanwhile, Albania has 35 major banking system debtors. The central bank said that only 6 or 7 of them will need to go through bankruptcy proceedings, as for the major part it is believed that loan restructuring will continue and those companies can recover.
On the other hand, the BoA is planning to launch a platform to deal with large banks' exposures. BoA experts told local media that this platform would enable the creation of a framework for finding a comprehensive solution in case a company was exposed to several banks.
Apart from this, the BoA has also informed non-banking financial institutions to write off the bad loans which were not paid for a year.
These measures are expected to further lower the level of non-performing loans in the country's banking system, the BoA said.
