At a time when the Bank of Albania has taken necessary measures by imposing limits on lending to the real estate sector, we must be clear.<\/p>\n\n\n\n
This is not just a technical measure but an alarm for the entire economic and political system of the country.<\/p>\n\n\n\n
What is needed now is not only the mechanical enforcement of financial rules but a deep reflection and a comprehensive response, involving both the government and the real economy sector.<\/p>\n\n\n\n
The current government must take responsibility to promote a sustainable economic policy that steers investments away from speculative bubbles and directs them toward productive and innovative sectors.<\/p>\n\n\n\n
Likewise, businesses must adapt to the new conditions and build sustainable financial models, while banks must do more than just enforce restrictions, by strengthening monitoring, risk management, and transparency.<\/p>\n\n\n\n
This moment is a national challenge that requires cooperation, clarity, and responsibility.<\/p>\n\n\n\n
What is missing in current policies?<\/p>\n\n\n\n
While signs of over-crediting in the real estate sector have become evident and the Bank of Albania has intervened with measures to curb it, the response from public policies remains fragmented, lacking a clear and bold orientation toward changing the economic model.<\/p>\n\n\n\n
At a time when a real transition is needed toward a more productive and balanced economy, economic policy remains stuck in traditional schemes of stimulating consumption and construction as the main sources of growth.<\/p>\n\n\n\n
The construction sector, despite identified risks and its sensitivity to market fluctuations and speculation, continues to be treated in practice as the main pillar of economic development, sustaining a structural dependency that threatens long-term stability. This is not only due to high demand but also due to the lack of real alternatives supported by economic policy.<\/p>\n\n\n\n
The manufacturing and industrial sector, which could offer not only sustainable economic growth but also quality employment and long-term exports, is not yet subject to a dedicated development strategy. Investment incentives in production remain weak and without transformative effect, while structural barriers\u2014from the lack of modern infrastructure to difficulties accessing finance\u2014have not been seriously addressed.<\/p>\n\n\n\n
Fiscal policies do not show a clear direction to steer capital and entrepreneurship toward fields of innovation, applied technology, modern agriculture, or value-added services. In the absence of a fiscal vision promoting production and knowledge, the biggest beneficiaries remain sectors with a fast cycle but without deep developmental impact.<\/p>\n\n\n\n
Small and medium enterprises, which constitute the backbone of sustainable economies across Europe, do not enjoy a consolidated support package, neither in the form of subsidies nor in policies easing access to markets, technology, or finance. These enterprises, which could be centers of local innovation and sustainable employment, remain outside strategic attention.<\/p>\n\n\n\n
In this context, the intervention of the Bank of Albania, as justified and necessary as it is, remains a defensive solution in the absence of a clear developmental approach from fiscal and economic policy. Without a bold and coordinated project to shift the economy from speculative construction toward sustainable production, the economy will continue to be trapped in 2025 in a model that produces short-term growth but lacks long-term foundations.<\/p>\n\n\n\n
Are we still in time for diversification?<\/p>\n\n\n\n
The question is no longer whether Albania should diversify its economy, but whether it is still in time to do so without paying a high economic and social price. The reality is that the current development model, based on non-productive sectors such as construction and debt-fueled consumption, is unsustainable and increasingly risky. This dependency is not only structural but also psychological and institutional. It has shifted focus from building productive and technological capacities toward quick but fragile profits.<\/p>\n\n\n\n
Opportunities for a rapid transition to a diversified, competitive, and less speculative economy still exist. But they will not come as a result of the market alone.<\/p>\n\n\n\n
Change has long required strong political will, precise strategic orientation, and real interaction between monetary and fiscal policies. Without this coordination, every step forward will be undone by inaction or institutional fragmentation.<\/p>\n\n\n\n
If this window of opportunity is not seized now, the country risks continuing in a new cycle of uncertainty. Likely, problematic loans may rise, foreign investments may avoid unhealthy sectors, and consumer and business confidence will erode. Worse still, a crisis still preventable in construction will not only hit that sector but will spread to banks, public finances, and the entire real economy.<\/p>\n\n\n\n
Who should react and how?<\/p>\n\n\n\n
The government can no longer remain the arbitrator and spectator but not a proactive actor. It must lead the opening of a co-governance process with economic actors and all other parties for drafting and implementing a national strategy for economic diversification, prioritizing productive sectors, innovation, digitalization, and valued agriculture. Development policies should be directed toward creating value chains, building supporting infrastructure, and encouraging long-term investments.<\/p>\n\n\n\n
The Bank of Albania, after sending the first alarm signal with lending restrictions for real estate, will continue to strengthen its supervisory and stabilizing role, but must cooperate more closely with the Ministry of Finance to avoid contradictions between monetary and fiscal objectives.<\/p>\n\n\n\n
The banking sector needs a cultural shift, from focusing on volumes to lending quality. Banks must become more selective, cautious, and oriented toward financing sectors that generate sustainable value, not just assets frozen in concrete and government bonds.<\/p>\n\n\n\n
Businesses and individuals must reflect on the new financial reality. They need to show maturity in seeking financing and redirect capital toward projects with economic logic, not just potential for quick profit. A more sustainable economy also means more responsible entrepreneurship.<\/p>\n\n\n\n
Civil society and the media, more than ever, must hold a monitoring and critical role to increase transparency, center the political debate on long-term development, and demand accountability for policies that hinder the transformation of the economic model.<\/p>\n\n\n\n
The Albanian economy has long been at decisive crossroads, to close and fulfill the path toward an economy with standards and quality diversified into sectors with significantly higher added value than before. Each of the above actors may choose to continue on the current path, letting risks accumulate silently until they manifest with severe consequences. But in what we analyze to make a subject of broad discussion, we think this political moment should be used to start a true economic transformation.<\/p>\n\n\n\n
The Central Bank has turned on the orange light.<\/p>\n\n\n\n
At this moment, the limits imposed on the real estate sector are only the beginning of a necessary process to avoid a financial crisis that could have serious consequences for the Albanian economy. Now it is the turn of the government and all society to show they have ears to listen and the will to act.<\/p>\n\n\n\n
But without a comprehensive and coordinated response, without clear policies for economic diversification and sustainable development, the Bank of Albania\u2019s measure will be a partial action that only postpones problems to the future. After all, the time to react was yesterday, but we are still in time to change course, to build a stronger and more sustainable economy, to avoid the risks of a fragile financial balance, and to ensure a better future for Albania.<\/p>\n","protected":false},"excerpt":{"rendered":"
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