Banking crisis in Turkey still ineffective in Kosovo

Turkish lira has affected a record 6.97 decline against the dollar two days ago, meaning loss of this currency's value this year for 46 percent.

Turkey is one of the countries with the largest presence of direct import and investment in Kosovo.

According to experts, the crisis in Turkey could increase the value of imports of products, but that could reduce the value of exports.

Meanwhile, effects on Turkey's foreign direct state investments in Kosovo may be noted in a longer period if the crisis continues.

Leke Musa, former chief executive in the American Economic Ode in Pristina, tells Radio Free Europe that poor positive effects can be felt in lowering prices of products imported from Turkey to Kosovo. In direct investments, however, this can be seen later.

I don't expect any impact in the short term. However, if there was a long-term impact on the economy and position of Turkish investors, then it could have an impact”, Musa says.

Even Alban Hashan, executive director at the “Riinvest”, in a proposal for Radio Free Europe, says Turkey's import of goods could increase due to Turkish currency depreciation compared to euro currency, but that exports could be reduced

Kosovo imports goods from Turkey and thus makes these goods cheaper for Kosovo businessmen. The other impact that could indirectly affect is if the currency crisis in Turkey could be expanded to the eurozone, which is important trade partners for Kosovo and Turkey, because a large number of European banks are exposed to Turkey's currency growth”, Hashan says.

Turkey's import value of goods in Kosovo last year has been around 300m euros, placing it third, after Serbia and Germany, while exporting Kosovo products to Turkey has been around 7.2m euros.

And in 2017 alone, Turkish state investments in Kosovo, according to official figures, have been about 30m euros, data that Turkey ranks as the fourth most valuable investment state, after Germany, Switzerland and Great Britain.

Citizens of Kosovo, in addition to trade co-operation, Turkey is considered a tourist attractive country, especially during the summer season.

Representatives of tour operators in Kosovo say that in the past two months, the demand of Kosovo citizens has increased to travel to Turkey, namely, along the coasts.

According to Kosovo Embassy data in Ankara, about 300 Turkish companies operate in Kosovo, and 11 of them are large companies.

Some of the largest Turkish companies operating in Kosovo are Enka, Limak, Calik and the Turkish Economic Bank.