Loans to enterprises in April and May grew by Lek 4.5 billion, among the highest rates registered in the last two years, Bank of Albania said in its latest report. The main contribution came from loans for investments, which showed a relevant growth in May. In these two months, the portfolio of loans to enterprises expanded by 2.1% on average, compared with the previous year, an improvement against the 1.9% growth in 2016 Q1.
However, Bank of Albania said that the annual dynamics of the corporate loans portfolio was also affected by the appreciation of the Albanian Lek against the euro, due to the dominance of the portfolio by foreign currency credit. Excluding the effect of the exchange rate, the developments in loans to enterprises surplus improved during 2016 H1. The annual growth by 3.4% in this portfolio is the highest registered in this segment in the last two years. Lek loans provided the main contribution to the improvement of loans to enterprises. The annual expansion of this portfolio improved at 4.2% for 2016 Q2. In May, Lek loans to enterprises accounted for 36% of the total, or 0.7 percentage point higher than the same period in the previous year.
By purpose of use, the expansion of loans to enterprises is supported by loans for investments, being also in line with the higher contribution by private investments to economic growth in Albania. The annual changes of loans for investment purposes showed an improvement to 2.7% in May, against 2.5% in March, while those for the loans for liquidity slowed down to 1.4% against the 2.1% in March.
By sector of the economy, the portfolio of loans to enterprises is dominated by loans to trade, hotels and restaurants. The share of this sector reached 38.1%, providing the main contribution to the expansion of the portfolio of loans to enterprises in 2016 Q2. This portfolio recorded 2.9% annual growth at the end of May. Loans to the construction sector showed improvement as well, growing by 1.7% compared with the previous year and accounting for 12.8% of loans to enterprises as at the end of May.