Governor: For the loss of over 2m euros BEC is not held accountable, it was regular transfer

Kosovo Central Bank (BQK) does not take responsibility for the theft case of over 2m euros from the Treasury.

BQK Governor Fehmi Mehmeti said it was a regular transfer and the BQK has no responsibility.

These comments were made during a media conference, where Governor Mehmet said the banking sector in the country, even in spite of the COVID-19, is more stable than ever, liquid, well capitalised and positive business of about 60m euros.

“Transfer has been made regularly by the Treasury under the Ministry of Finance and has gone to regular procedures. We cannot stop such a transfer when carried out by responsible officials. It's a regular transfer implemented through the payment system at Central Bank”, Mehmeti stressed.

Governor Mehemti further said that the CEC has an effective internal control system to reduce the possibility of fraud, abuse and various errors that could happen.

Mehmeti warns that economic growth for 2020 is expected to shrink 7.2 per cent.

Mehmeti: The trend is very stable, economic growth is expected to shrink 7.2 per cent

I can state with full responsibility that we have very stable conditions without any possible defects. Economic consequences from the pandemic are now obvious, the CEC forecasts are that Kosovo's economy will mark a 7.2 per cent drop. Whatever the predictions may be reviewed again in view of the many uncertainties they have made with the spread of pandemic over the following months, and therefore measures that can be taken by the authorities responsible to manage the situation with the pandemic”, Mehmeti said.

According to Mehmet, commercial banks in the pandemic earned about 60m euros. While saying remittances this year -- by August -- have marked 608.6m euros, or an annual increase of 10 per cent.

“As far as bank profiting is concerned, currently with the numbers we have available amounting to around 58m euros. However, we cannot consider real profit taking into account the regular relief measures we have undertaken so that banks can help the country's economy. During this period of time banks have not been asked to make credit bills. Bad loans today mark 2.7 per cent, but certainly the level of non-performing loans will increase by”, Mehmeti stressed.

The governor has also commented on the failure to vote on the Bill for economic recovery, which, according to him, has major consequences and is worrying not to approve the economic recovery plan.

He said the value of new loans issued between January and August 2020 is 912.5m euros, compared to the previous 959 euros, or is a 5 per cent drop.

However, according to him, during July and August new loans have managed to issue 320.7m euros, which is an increase of 23 per cent compared to the same period last year.