BQK: Insurance tariffs have been set up for luxury vehicles, not transport ones

At this year's recent media conference, Kosovo Central Bank Governor (BQK) Fehmi Mehmeti said that BEC with its activity has continued to provide a stable financial and support system for economic development.

Governor Mehmeti said that this year, there have been 10 per cent increases in loans and deposits with a 16 per cent increase.

Speaking of credit interest rates, Governor Mehmeti said it has fallen to 6.5 per cent.

With regard to the banking sector, even this year is marked by an increase in credit, improved access to finance, and higher growth in financial sustainability. At the end of 2019, loans reached 2.98 billion euros or an annual increase of 10 percent. Annual growth or the main source of financing for banking activity is considered to be deposits that mark 3.75 billion euros or a 16 - percent increase. The interest rate has continued to drop to 6.5 per cent, which compared to a year ago was 6,6”, Mehmeti said.

While normal local inflation average, according to him, marks 2.8%, which is significantly higher with that of the previous year.

Mehmeti said that with positive developments also characterised the Penonal Fund of Kosovo, the asset value of this fund has reached 1.92 billion euros, marking an annual increase of 8 per cent, respectively, of positive returns worth 138m euros.

Even the insurance sector this year has helped with positive profits, Mehmeti also cited the revote of a security company's license and increased car insurance.

Mehmeti said this hike affects those who cause damage to accidents, while adding that in the next year, the number of unsanitated vehicles will be reduced.

It is good to be interpreted into the issue of these luxury vehicles, not vehicles. What we're doing right now, is that this increase in tariffs affects those who cause damage, because we're drafting the regulation for Binnus Malusı, we're going to increase its value and I'm sure those who don't cause accidents. Its idea is to reduce the damage report, and the idea is that those who do not cause damage will not pay the high fee, rather they will pay less than in the past”, he said.

Mehmeti has also mentioned revocation of licenses for a microfinancar institution and another non-bank financial institution, which he said has acted in full compliance with its legal mandate to Monego and luteCredi.

A few days ago we've revoted the licenses of two financial institutions, actually a financial institution and a non-bank financial institution that in this case are Monego and UiteCredit. Because these institutions have consistently applied high interest rates compared to what they presented in the business plan. They have applied three-ceral interest rates, and for this reason, the CEC has made this decision to revote registration for these institutions. In this process, we are seeing different forms of public pressure on these decisions, but I want to re-inflat that the CEC has acted fully in line with its constitutional mandate, Mehmeti said.

Governor Mehemet said any financial destabilisation also causes danger to national security.

While BQ Deputy Governor Sokol Havolli said claims to break diplomatic relations with Estonia are lies.

Also, below the conference prices are shared for “New economist.