Over 200m euros of banks blocked in courts

Over 200m euros of commercial bank vehicles have been blocked in court courses, Kosovo Banks Association leaders say. This financial value is estimated at close to 10,000 electives in these courts.

Petrit Balija, leader of the Association of Banks of Kosovo, has told Radio Free Europe that the value of tools that are not in circulation on the Kosovo market also affects the development of commercial banking activities operating in Kosovo.

“Given the greatest need for credit and the strong need for Kosovo economic expansion, 200m euros have a major impact on the banking sector. This certainly makes credit difficult, because even risk increases when the judiciary doesn't function”.

Experts on economic issues, meanwhile, say the justice system in Kosovo is the main cause of curbing economic development, not only for the functioning of banks, but also for encouraging foreign investments.

Naim Gashi, an expert on economic issues, says that from failing to functioning effectively in the courts, comes to an increase in bad loans, resulting in increased interest rates.

When credit risk rates are calculated, the number one risk is the weak functioning of the justice system in Kosovo and therefore we have the interest we have paid and we continue to pay, the highest in the region”.

Otherwise, the collection of unresolved subjects continues to be a problem which the justice system is continuing to follow. Over 200 thousand old matter remains unresolved.

Despite these, non-forforforcing loans to commercial banks are low, compared to the countries in the region, Central Bank of Kosovo Governor Fehmi Mehmeti said days ago, the task leader of Kosovo Central Bank (BQK), adding that the financial sector continues to be stable and profitable.

The non-aligned circumstances have continued the decline trend, and today the non-aligned credit rate is at 3.6 percent, which is a markedly better indicator compared to countries in the region and beyond. The financial sector continues to be well capitalised and with a good state of liquidity”, Mehmeti has said.

Otherwise, the value of loans in the ten commercial banks operating in Kosovo has reached over 2 billion and 400m euros, at an average interest rate of 6.8 per cent. (REL)