Commercial banks in Albania have tightened their lending rules for businesses in the last quarter of 2013, while easing the credit standards for households, the central bank said in its latest bank lending survey. Credit rules tightened on loans granted to both small and medium sized-enterprises and large corporations. By purpose of use, standards tightened on loans for investments financing purposes, while easing slightly on working capital loans. This development was again on account of sector-related problems, non-performing loans and the negative assessment for general macroeconomic situation in Albania . On the other hand, the central bank's decision to ease its monetary policy contributed to softer lending standards for businesses. As regards to households, lenders eased credit standards on mortgages and on consumer loans. In Q4 corporate demand for credits declined, while household demand slightly increased. Bank experts expect an improvement of the lending rules in both businesses and households segments in Q1 2014 in light of the weak demand for loans.
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