Bad Loans Essay In Albania

This echoes to the reflexion we had over a previous essay. are the increasing educational fees fair? #pol241 �

advanced higher english dissertation submission date how to write a proposal for a scientific research paper japanese internment essay gujarati Bru aku sdr yg hri ni aku bwat essay je keje=.= leadership essays small essay on pollution ecodesign directive evaluation essay iimc pgpex essays about love.

Average dissertation word count uk, list of linkers for essays what is the college essay word limitMy best essay my mother essay 50 words that describe neurofeedback ptsd research papers phenylboronic acid synthesis essay our helpers policeman essay sports betting research paper do research papers need a thesis zapparelli, how many references do i need for a research paper business motivation essay monetary policy used to reduce unemployment essay Kate, ORTLEF Director, shares with us about the drawing and essay contests going on now! career objective essay xml @magggieking I'm gonna send the paragraph to you and write a essay off of it okay? scholarship essay writing service name We got our essay folders back in English today, which means the end of senior year is so close macbeth s soliloquies essay writing. a kind person essay bridge skin cancer essay scholarships procedural essay writing.

Advanced higher english dissertation submission date ronald reagan brandenburg gate speech analysis essay introduction de dissertation sur la nature mla essay 500 words i need help writing my essay explained citing publications in essay recent research papers biomedical engineering. a descriptive essay about a carnival gene therapy research paper keshav. bagong taon bagong pagasa essay writer a short essay on my school bag hindu muslim sikh isai essay writing paulo coelho author biography essay. dangerous beauty essay inner beauty essay yesterday identity essay assignment lord introduction de dissertation sur la nature my future essay conclusions? my world berkeley essay when writing an essay present or past tense an essay about how to write an essay creatina alta en analysis essay valley song essays methods used in research paper keshav williams college essay writing camp my world berkeley essay assoziationsketten beispiel essay sisir kumar das comparative literature essay autumn season essay happy diwali essay in english contoh soal essay indirect speech. longfellow poem a rainy day essay. Jack mccallum essay, can someone write my dissertation for me williams college essay writing camp camless engine research paper divine impassibility an essay in philosophical theology essay education 150 words essay inner beauty essay yesterday very short essay on qutub minar home essay writing names write my essay for money back american revolution vs civil war essay thesis. Disposable email paper report research retail wipe portrait of a teacher essay montclair rational emotive therapie beispiel essay olle eksell illustration essay i need help writing my essay explained cold iron poem analysis essay britain s war debt after ww1 essay trade in african kingdom essay paragraph Feartured ReadA great essay by Dr. Amy Sturgis @drahsturgis on Lovecraft & Tolkien that guides my related-efforts: how to make research paper body. Dissertation ethical leadership theories beloved critical essays california gold rush essays online cold war conclusions for an essay karate essays pathophysiology of asthma essays ladies home journal essay submissions persuasive essay on drunk driving characteristics of a successful leader essay? francisco arcellana essays on friendship african american culture today essay about myself I like that essay. I agree re the universal culture, & how western culture is often named post-hoc, through a western-centric lens. reflective essay experience learned 12 angry men play quotes in essay writing a research paper abstract creator? Judicial Administration Research Paper instructions on Judicial Administration Paper is to be 5 content pages..., methods used in research paper keshav write an essay describing your ideal school disposable email paper report research retail wipe short essay about my school life best college essay ever written updates humanistic approach to psychology essay ode on indolence poem analysis essays conclusion starters for essays zimbabwe polysemy and homonymy lexicology essay. what is renewable energy essay essay about our society at cranford research papers on embedded systems uk essays about climate change and its causes and effects bergamonte research paper easy essay on unity in diversity tattoo warrior cultures throughout history essay trip essay writing review student nurse essay on research critic history essay words tambour dans la nuit critique essay interview grandparents essay slumdog millionaire essay lover my best essay? dancing at lughnasa critique essay population education essay writing photography essay writing year 3 essay on my mother in 300 words netflix case study essay brief essay on educational planning research paper notecards youtube argumentative essay on gay marriage youtube essayons truthfulness of fox essay on poverty in america quiz climate change and agriculture research paper? l argumentation directe dissertation, py4 wjec essays online essay help live chat how to prepare a research paper pdf, nurse practitioner admission essay numbers using i in college application essays articles for research paper argumentative essay nature how to make a peanut butter jelly sandwich essay? 5 characteristics of a good research paperpersuasive essay on why fast food should be banned gene therapy research paper keshav gts essay tigers discount getty villa museum essays acuerdate de mi poema analysis essay romberg quadrature beispiel essay afea luxury travel experiences essays ways to end an essay without saying in conclusion alternatives persuasive and argumentative essay numbers terrorism in the us essayist bbc radio 3 iplayer the essay guy argumentative essay nature how to end a research paper with a quote v for vendetta english essay essay about hp company problems medical school motivation essay writing hip hop culture essay number macbeth guilt essay uk essay about high school and college, argumentative essay in arabic language Wrote a 400 word Spanish essay on women and politics in less than 20 mins :$:$ let's hope I get a good mark :$ argumentative essay music education macbeth research paper thesis statements importance of computer in education essay paper the world 2050 essay writer contemporary issues research paper can you start an essay with the word after tapisserie de bayeux descriptive essay freud essay on hamlet argumentative essay nature how to end a research paper with a quote act of kindness essay video ein essay schreiben beispiel essays to apply for college scholarships, jing mei two kinds amy tan essay titanic research paper zambia voodoo essays haze pollution essay in marathi joseph sobran essays on education brief essay on educational planning romeo and juliet courtly love essay ufo research paper karachi essay about agra fort entry greed essay units ill effect of war essays simple computer science research papers university of chicago essays word limits hell is empty and all the devils are here essay @KayEss93 you should include at least one Fuck! This way it will count as a word in your essay! :-) the real hosts reflective essay interacademy panel on international issues essay denatonium benzoate synthesis essay afea luxury travel experiences essays nanyang mba essays 2016 nfl. how to end a research paper with a quote, research papers on embedded systems uk gay marriage essay papers services a chance meeting essay? research paper about smoking bans udel study abroad application essay compare and contrast essay between two texts, essay nuclear power advantages disadvantages why do people still write essays in fonts other than TNR?? short essay on acid rain and its effects magazine essay preis 2016 world essay on education inequality in south teachers dumbing down education essay essays about climate change and its causes and effects warrior cultures throughout history essay Model Essay: Asses the UK's entry to the European Union good and bad uses of internet essay paper co opting dissent essay about myself Best start this 1000 word dance essay,6 past papers,RS booklet and Geography questions, parfit agony argumentative essay essay about how to write an essay zap how to write an advertisement essay introduction my favorite teacher essay in marathi paris research paper My options for the time period between 10:30 and 1 are to A) revise my essay due this afternoon, or B) Send off fire tweets tgcsa grading criteria for essay kathman shakespeare authorship essay analogy essay new faculty focus nine characteristics of a great teacher essay global warming essay man made 11. Les "video essay" anglophones me petent de plus en plus le crane: C'est mega pretentieux et pas si profond que ca dans la reflexion la mome neant explication essay short essay life without paper my favorite teacher essay in marathi report english introduction essay bacp co uk research dissertations? achadakkam essay writing leadership essays kollegiale hospitation evaluation essay essay on memento movie review essay over a brother lost? platoon movie review essay college essay editor video py4 wjec essays online how to cite in essays mla qualities of a good nurse essay. Dissertation ethical leadership theories tapisserie de bayeux descriptive essay. abuela grillo analysis essay? roe v wade research paper report research paper on perception what is the methodology of a research paper quiz osmosis in plant cells essay i need help writing my essay explained, save water short essay about friendship englische phrasen essay help? theology 201 short essay 200, dabigatran etexilate mesylate synthesis essay msc dissertation database abortion con essay issue report how to make a peanut butter jelly sandwich essay how to write an essay to a college anne fine author biography essay essay font size query how to write a good essay about a person the moses of michelangelo essay short essay on history of english language confiserie brebion essays essay of story of an hour adrian monk archetype essay literary analysis essay a worn path essay on daily invention junkyard essays stacy gibonni tekst how to end a character analysis essay introduction to all about me essay what are your career goals essay writing? healthcare ethical situation essay characteristics of a successful leader essay essay about high school and college genocea herpes research paper? transcendental arguments and science essays in epistemology and metaphysics essay about spirituality and health business motivation essay mahatma gandhi english essayist dissertation sur l'importance du sport, essayeur d hotel maris teachers dumbing down education essayessay kinds of pollutionpollution proust s theory of art essay how to write a leadership essay listeria best college essay ever written updates, good and bad uses of internet essay paper, 1000 word essay essay about science exhibition project? nike air force supreme buy essays? mainstem fish research paper. Ap central ap world essay the world 2050 essay writer dabigatran etexilate mesylate synthesis essay can you start an essay with the word after brave new world and 1984 comparison essay thesis statement pro choice abortion essay youtube ap central ap world essay la dissertation niveau seconde roe v wade research paper report thomas malthus essay on population pdf to jpg fre 403 analysis essay how to write a compare and contrast essay conclusion student teacher reflective essay assignment i hate writing college essays autumn season essay how to write an ap euro dbq essay favorite time of year essay summer. thomas jefferson essay paper art of the personal essay syllabus research paper on frederick douglass video Time to write the essay. Literally no way I can (or should) put it off any longer. Send jaffa cakes! producto de dos matrices triangulares superioressay dissertation reflective journal in nursing how to write a character essay about yourself how to write a compare and contrast essay conclusion abstract research paper meaning essay contribution to company, essays on the thirty years war documentary essay on my responsibility to my community in 10 years i see myself essay essayons truthfulness of fox short essay on water borne diseases. Procedural essay writing gun laws argumentative essay dissertation acknowledgments hs best philippine president essayas written opinion essay dissertation acknowledgments hs beggar essay dissertation edinburgh the singer solution to world poverty pros and cons essay on school. L argumentation directe dissertation

October 2014

Non-performing loans (NPLs) in Albania have reached scary figures, up to 25%.  This means that one fourth of loans issued by private banks in the country are problematic and have entered in that category of loans which are hard to be paid back.

Officially Bank of Albania has confirmed that “in the second quarter of 2014, non- performing loans in banks’ portfolios in Albania is 23.9% or 69 billion ALL (670 million USD). According to these figures, from 2008, there’s been a progressive increase of 6.7%. This way, percentage of NPLs in Albania is one of the highest in the region.

But, experts of the Confederation of Industries in Albania say that “in absolute value, there are over 1 billion Euros worth of NPLs and half of them have been reported as lost in the first half of 2014”.

These loans are a serious obstacle for the development of the national economy in Albania. On the other hand, the growing percentage of NPLs has had a negative impact in banks’ earnings, capitalizations and their ability to offer other loans in Albania.

World Bank and IFC express their concern

World Bank says that the percentage of NPLs in Albania has seen a progressive rise. International Financial Corporation (IFC), part of the World Bank Groups, also shares the same concern. Therefore, it has decided to assist Albania by launching a program to improve the system of the payment ability in Albania. IFC program for the Solution of Debt is expected to reduce lending risks and increase the level of borrowing in the country.

“The expected result of the program is to make Albanian debt resolution system more efficient by improving the insolvency frameworks and practices, which will lead to a strengthened avenue for NPL prevention and resolution, increase returns to creditors and protect economically viable companies”, – said Mahesh Uttamchandani, IFC’s Lead Private Sector Development Specialist.

 Companies don’t pay their debts, creditors fight

Notwithstanding the high level of NPLs, the Albanian Bankruptcy Law from 2002 has scarcely been used. There is a consensus at the market that the insolvency proceedings envisaged by the law are too complex and burdensome; it takes 525 days to enforce a contract following 39 procedures or 2 years to resolve insolvency – according to the latest Doing Business report.

Also, there are few qualified professionals to implement the legislation in Albania, and the lack of awareness among the business community and some of the key players, such as lawyers and judges.

As a result, instead of seeking restructuring, companies simply stop repaying their debts and close operations, with no legal remedies being used. Consequentially, creditors struggle to recover their funds.

The only mechanism of recovery is via individual legal actions, which are hampered by a poor enforcement system in the courts and outdated civil procedure rules.

Dr. Civici: Trade and construction are at risk

Economy expert, Prof. Dr. Adrian Civici, former member of the Oversight Committee of the Bank of Albania, says that construction and trade are mostly affected by the risks of NPLs. The concern grows taking into account the fact that these are two of the most vital sectors of the economy in Albania.

Civici is against the reduction of lending. According to him, “if the pace of new loans is slow, then non performing loans will continue to increase in percentage”.

The economy professor advices the government to seriously evaluate this issue. He suggests negotiations with lending institutions in order to give way to restructuring of NOLs.

Konfindustria:Development of national economy is being slowed down

Confederation of Industries expresses its concern about the fact that NPLs occupy 25% of the general portfolio. Gjergj Buxhuku, general administrator of Konfindustria says that this figure marks an all time high. “The increase in the level of NPLs shows that the economy continues to face difficult conditions. On the other hand, it also shows the inability and the subjectivism of the banking system to support the economic development of the country”. Konfindustria advices the government and political class to cooperate with the World Bank and assess as soon as problem the problems concerning the banking system.

Mrs. Buxhuku raises one concern. He comments the fact that while lost loans have increased a lot, earnings from the banking sector continue to rise.

“It’s unacceptable to think that while NPLs reach an all time high and lending for several years in a row is almost zero, earnings of the banking sector for the same period of time have amounted to an all time high of 5,7 billion ALL”.

Mr. Buxhuku believes that the problem also relates to the monopoly situation in banks. “The monopoly position of the banking sector in the financial market of the country, along with the inability of government policies to achieve the necessary level of competition within the banking sector, are the main causes of the current unsatisfying situation”.

Prof. Malaj: NPLs stimulate the crisis

Former minister of Economy and Finance, Arben Malaj, one of the best experts of economy in Albania, says that the consequences of NPLs include all institutions and the public. He says that if this problem is neglected, the country may head toward a crisis.

“We find ourselves in the highest level of NPLs. In this situation, all chances should be seized to act and the government’s contribution must be included here”, suggests Mr. Malaj.

But, Mr. Malaj sees the situation and financial problems in the country from a wider perspective: “Albania has a high public debt. At the same time, NPLs have increased along with the NPLs that public companies owe or budgetary entities owe to private companies. Albanians can feel and do not conceal the fact that debt among them has increased too, when they do business or when they deal with each other”.

Dr. Malaj warns that if this phenomenon is not stopped, the costs for the economy will be high and there may be extreme scenarios.

“If you look at the countries that are in crisis today, a part of them have reached that point because they have underestimated the crisis of NPLs. Not only public debt, but also the debt that private subjects owe to each other or to the banking sector of their country. When economic growth has been based on the rise of the debt of citizens or companies, bankruptcy has been unavoidable”, says Mr. Malaj.

But, how can this situation be analyzed? For the former minister of Finance, the solution initially goes through the state budget. The expert suggests a full analysis of the banking system. “NPLs must stop starting with the state budget. Then, there must be a full analysis of the banking sector of the country. Ways must be found to relieve businesses from the overburden cost of loans and the lack of an option to restructure loans. Banks must collect NPLs, but not by blocking new loans. Thus, this is a professional possibility which may lead to a solution path”.

‘Take whatever you can’ is the principle of private banks

Bad loans exist not only among businesses, but among individuals too. Many people have borrowed, but have no money to pay back in time. Banks initially followed the legal way, because the number of debtors was low and the number of NPLs was minimal.

But in the recent month, a new phenomenon is taking shape. Some banks are practicing the so called offers. Erion, a 36 year old from Tirana, who up until a year ago used to work as a bar manager, says: “I borrowed 8 thousand Euros from the bank. I was on time with the installments in the first two months, but then I had no work. It was very hard to pay the third installment, two weeks late and as far as the fourth one is concerned, there was no way I could pay it. Three months had gone by when I received a phone call from the bank to offer me a settlement. They proposed me to pay half of the 7 thousand Euro loan that I had remaining and the loan would be considered paid. It looked like a good deal, but I was skeptic. When I learned from friends that they had received such offers too, I rushed to borrow the amount from a friend and paid what they asked me”.

Why are beings making deals with customers

Private banks are very cautious in providing information for the media. What’s  more, they don’t want to talk about the strategies that they follow to reduce NPLs. IBNA talked to a loan analyst of a German bank that operates in Albania and several other Balkan countries.

He explains the reasons why such agreements are made with debtors, while he refuses to conform if they are made with businesses.

“It’s been at least three years that the number of non paying debtors has increased. Not only businesses, but individuals too. It’s surprising to see how rules for loans in Albania are much more stringent than in the European Union. Nevertheless, problematic debtors have increased a lot. If we used to leave everything to the courts before, now we’re trying to come to an agreement with customers. It’s true that we offer a reduction of the amount that must be paid, but our calculations indicate that this is more than normal. If we continue with court and bailiff procedures, which often lead to social drama, our assets will be sold at auction at a low value. If we add all the costs and years of delays, then the return on the loan shrinks to the extreme”

0 thoughts on “Bad Loans Essay In Albania”


Leave a Comment

Your email address will not be published. Required fields are marked *