Nonperforming Loans in Albania

Güngör Turan, Arjeta Koskija


This paper examines the continuous increase of nonperforming loans in Albania as a result of the problems caused by economics crisis and the decrease of incomes coming from emigrants. The methodology used consists on applying Johansen multivariate co-integration test to show the long-run relationship that exists between nonperforming loans and: real GDP; unemployment; inflation; loan interest rate; and remittance. The data taken are calculated on quarterly basis from 2003 to 2013. The results show that nonperforming loans and all these variables are co-integrated but this is a weak co-integration in the long run.

DOI: 10.5901/ajis.2014.v3n3p491

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This work is licensed under Creative Commons Attribution 3.0 License.

Academic Journal of Interdisciplinary Studies ISSN 2281 3993(Print) ISSN 2281-4612(Online)

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