The level of lending to the economy slowed down slightly in April, but so far this year continues to be at historically high levels.

According to data from the Bank of Albania, new lending granted by the banking sector was worth Lek 129.8 billion, down 3.8% compared to April last year.

However, the progressive performance of the first four months remains positive this year. The banking sector disbursed a total of Lek 129.8 billion in loans, up 10.9% compared to the same period last year.

Credit growth this year is mainly supported by individuals, while loans to businesses have slowed down the rapid growth of last year.

For the first four months of the year, individuals received Lek 42.9 billion in new loans from the banking sector, an increase of 26.4% compared to the same period last year.

Credit has continued to grow at high rates, both for financing the purchase of housing and consumption. The continuation of the rapid growth of housing credit has concerned the Bank of Albania, which this month imposed several restrictive measures for this product, which will enter into force in the second half of this year.

Meanwhile, leading to businesses at the beginning of the year are at levels similar to a year ago. For four months, the banking sector granted Lek 83.3 billion in new loans to businesses, with a modest annual growth of 0.4%. Unlike what is happening with individuals, real estate leading to businesses is showing a significant decline this year, after having recorded a very rapid growth last year.

Credit to the economy continues to grow, also measured as portfolio surplus. At the end of April, the total portfolio reached approximately Lek 872 billion, up 13.1% compared to the same period last year. Growth has slowed slightly from the 13.3% level of the previous month.

In the private enterprise segment, the loan portfolio is up 12.4% compared to the previous year. Meanwhile, for individuals, the loan portfolio is up 15.4% compared to the same period last year.