FLASH NEWS
IUTE Credit, Kredo.al, NOA, Fondi BESA & Co, 30 million euros in profits from extortion of Albanians
2025-10-10 21:01:49 / EKONOMI&SOCIALE
Non-bank financial institutions have once again recorded staggering profits, while thousands of Albanian families face the consequences of small loans and frightening interest rates every day.
According to official data from the Bank of Albania, these institutions ended the first half of 2025 with a net profit of 3 billion lek, or about 30 million euros.
This category includes microcredit, lending, financial leasing, factoring, and non-performing loan acquisition companies, enterprises that have built a profit empire through aggressive lending to the poorest segments of society, who for various reasons avoid the traditional banking system.
61% of their loan portfolio belongs to individuals, i.e. ordinary citizens who borrow for basic consumption, health, or to meet urgent obligations.
That's where the crux of the problem lies: these loans, often offered with unclear terms and interest rates that exceed any ethical limit, have plunged hundreds of families into a spiral of debt, leading some of them to severe financial losses and even tragedies, like the well-known case of Pal Trashaj.
As the profits of these companies grow, the number of families going bankrupt or facing foreclosure is also increasing. Companies like Iute Credit, Kredo.al, NOA Finance, Fondi BESA and others dominate the microfinance market in Albania, creating a system where profit comes from citizens' inability to pay.
In the letter, the Bank of Albania reports that the quality of the loan portfolio has improved slightly, with the ratio of non-performing loans falling to 12%, but the reality on the ground tells a different story: many of the "repaid" loans are being re-negotiated under new terms and conditions, which only prolong the debt and increase the interest burden.
Despite recent regulatory interventions that limit the number of loans an individual can take out and impose debt-to-income ratio caps, the profit mechanism remains the same: high interest rates, hidden fees, and minimal late payment penalties.
In a market where companies' profits reach tens of millions of euros in six months, the law still does not provide sufficient protection for citizens, while hundreds of them continue to lose their savings, property and often, their dignity. Albania thus remains among the few countries in Europe where microcredit, instead of helping people in need, has turned into a profitable business on poverty. / Skyweb.al
Happening now...
ideas
top
Alfa recipes
TRENDING 
services
- POLICE129
- STREET POLICE126
- AMBULANCE112
- FIREFIGHTER128