Citizens don't buy property leaving mortgages

There are many houses, lands, cars and other playful or real estates waiting for a new owner, but they're rarely the ones who decide to buy them.

It's about The mortgages, which commercial banks operating on the Kosovo market have put for sale. The sale of mortgages is due to the non-fulfillment of obligations to banks by creditors.

To get some particular credit value, bank customers must hostage their homes, shops, cars, land to household electronics, whose value must be higher than approved credit.

But because of Citizens' hesitation For buying these property by judicial procedure, in most cases mortgages buy banks themselves, private bookgoers in Kosovo say.

<x0) The banks.

Fadil Hoxha, deputy chairman of the board of Private Masters in Kosovo, tells Radio Free Europe that citizens are still reluctant to buy leftover properties Bank mortgage.

There's a hesitation from other people, and there's usually these mortgages that have left the debtors, as insurance for the return of the loan, primarily or 95 percent of them, buy creditors themselves, the banks”, respectively, Says Hoxha.

Even experts on economic issues say the tradition of citizens in Kosovo does not allow to buy property from third parties, which are at public auctions.

Naim Gashi, For Radio Free Europe, says that in some cases the new buyer has had a problem with the person who has failed to pay off the debt in the bank.

So the main reason is that citizens and businesses don't want through buying property to buy problems”.

This affects very negatively the functioning of the real estate market and banking interests in Kosovo. Unable to sell mortgages, banks are keeping credit interest” high, Appreciate it, Gashi.

He says that even the lack of functioning of the justice system affects this direction.

“As far as legal aspect is concerned, I think there is no problem with buying these properties, because owners are legal and legal, but given the rule of order and law in Kosovo, often it has happened that new owners have problems from old owners, who lost their property to”Gashi explains.

According to Kosovo Central Bank data, over 2. 2 billion euros has reached credit value in the 10 commercial banks operating in Kosovo, with interest rates of over 8 per cent, depending on the bank and the type of credit.