3 minutes agoKosovars mired in Bank Credit and Debt
Periskopi(8 years ago)
(8 years ago)The Central Bank of the Republic of Kosovo has announced that domestic economies' debt continued growing trend. Internal “Borgi of the banking sector has scored 12.7 percent growth, while debt to microfinance institutions, which have reached over 10 percent of the debt value to the banking sector, has increased by 26.8 percent. [...]
The Central Bank of the Republic of Kosovo has announced that domestic economies' debt continued growing trend.
Internal “Borgi of the banking sector has scored 12.7 percent growth, while debt to microfinance institutions, which have reached over 10 percent of the debt value to the banking sector, has increased by 26.8 percent. The external debt of family economies doubled and reached 6.7 percent of the total debt (gura 38). In December 2017, the total debt of family economies has increased by 15.6 percent and scored 17.0 percent of the country's BPV”, the CEC report reported.
According to the CEC, the new loans released by the banking sector for family economies continued to accelerate growth, which was more expressed for new mortgage loans that easily increased participation in the total new loans.
A total of debt to banks has increased by 15 percent over 10.8 percent a year ago. According to the goal, growth was more pronounced for new mortgage loans, 28.1 percent, while consumer loans marked growth of 14 percent. The higher rise in mortgage loans contributed to the overall new loans to family economies increase by 17.7 percent, up from 1.8 pp.
The size of mortgage loans has also marked a positive trend of growth, with what cases evidently dominated the maturity loans 5 to 10 years, and accelerated the rise of credit with maturity over 10 years. New credits for family economies are expected to continue growth in the following year along with expectations for increased demand, as well as easing conditions and standards, such as increasing the approved amount and declining interest rates.
“Neto's credit rating of family economies towards the banking sector marked decline as a result of higher credit growth in relation to increased deposits. Deposit of family economies reached 2,170.7m euros, which represents an annual increase of 2.3 percent. However, the rate of increased deposits has slowed, falling to the lowest level since the sector's operation (figure 39). The loans, on the other hand, continued the biiff increase and reached 900.8m euros, affecting the loss of 4.0 per cent of position”, the CEC report said.
