Kosovo's economy rose 3.7 per cent

According to this report, economic growth in Kosovo in 2017 is estimated to have been 3.7 per cent, while for 2018 the CEC's forecasts suggest the real rate of BPV growth is expected to be at an interval of 4.2% to 4.4%.

In 2017 the financial system was marked by increased activity, with an increase in bank lending by 11.5 percent in particular. Also, very important development for the banking sector also represents the further decline of informal loans, which dropped to 3.1 percent, a markedly lower level compared to other countries in the region.

Credit interest rates continued the falling trend, thus contributing to improved conditions for access to banking financing. The average interest rate in credit in late 2017 was 6.8 percent compared with the rate of 7.2 percent registered in the same period last year.

Particularly important is improving the performance of the insurance sector, which after a long period of financial fragility, managed to improve performance and mark a net profit of 6.4m euros. This improvement in performance reflects the success of BQC regulatory and supervisory measures for the performance of this sector. The microfinancial sector marked increased creditive activity, while the value of all assets amounted to 193.5m euros, which represents a significant 29.4 percent annual increase. The pension funds were characterised with a positive performance in 2017, while the total value of their assets amounted to 1.65 billion euros, a significant increase of assets of 16.0 percent, and doubled investment returns to 103.1m euros in 2017.

In the function of maintaining a stable banking system, the CEC during 2017 has conducted examinations of commercial banks conforming to the pre-represented plan, in line with international practices in the respective field, special attention has been paid to credit risk, liquidity risk, market risk, and other risks based on access to endangered supervision.

The Central Bank of the Republic of Kosovo has paid great attention to protecting users of financial services. During the past year, 602 complaints by financial utility users ( physical and legal persons) have been considered in the CEC, of which 335 complaints have been filed for banks, IMF, IFJB and pension funds, while 267 complaints have been filed for insurance companies.

The CEC has continued to benefit from technical assistance during 2017, provided by international financial institutions and donors, both with existing projects and new initiatives.