2021-01-26 13:24:29 Last update: 2021-01-26 13:24:29

The domestic debt and private lending ratio during 2010-2015

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Open Data Albania has researched about domestic debt and lending ratio during 2010-2015. Domestic debt is the debt taken by the central government to meet its long or short term financial needs and is mainly held by the Bank of Albania, second tier banks, other financial companies and individuals. The purpose of the analysis is to evaluate whether the application of debt holding for guaranteed public debt has damaged lending of private economic sectors.

Source: Ministry of Finance, Bank of Albania
Comments and analysis: ODA

In the time frame 2010 to 2013, the domestic public debt is lower than bank lending of the economy. In 2013, this ratio was reversed. Government demand for domestic debt exceeded the economic lending value for private sectors and businesses. In 2015, the domestic public debt (stock) amounted to ALL 551.37 billion, while the bank lending to ALL 546.87.

In 2015, the government demand for domestic debt declined considerably due to Eurobond reissuance. On the other hand, the high demands of governments for domestic debt also affect to a certain extent the orientation of the second-tier banks toward guaranteed lending instead of the bank lending of private sectors since it poses greater risks for guarantees.

Source: Ministry of Finance, Bank of Albania
Comments and analysis: ODA

Year 2011 recorded the lowest value of the public debt and private lending ratio amounting to 0.809 and this is mainly due to the increase of the total value of private lending. Meantime, the highest values of this ratio amounting to 1,008 were reported in 2014 and 2015. They were mainly due to the increase of domestic debt stock in 2014. The growth of this year domestic debt resulted from the issuance of 10 years term bonds by the government.

In 2015, domestic debt and private lending were almost reduced at the same rates, by 1.008. Reduction of  private lending this year is also due to writing off from the banks registers of lost credits carried forward in the financial statements for years without hope of collection after all legal steps were taken.

Excel datasets : XML, N3 datasets :
    Contributer: Rigels Guzi
    Translated by: Mimoza Backa
    Edited by: ODA