BQK governor says Trust lost over 50m euros from pandemic

Even the Trust Pension Treatment Fund has been hit by Pandemia Covid-19, thus losing over 50m euros, compared to 110m euros that were lost at the beginning of the pandemic show.

The governor of the Kosovo Central Bank has confirmed this (BQK), Fehmi Mehmeti, who also expects this crisis to have a decline in foreign direct and consumer investments in the country.

Part of the pension contributions of Kosovo's citizens are invested in international markets, and this fund remains highly endangered because of the virus affecting the economies of world states. Trust tools up to the pandemic had reached about 2 billion euros as a total fund.

Mehmeti in an interview for The KP has also talked about meeting with the Minister of Finance and Transfers about economic recovery.

He has also isolated that only Thursday, commercial banks in the country have issued 1m-euro loans, which, according to him, is quite positive.

The pandemic has also hit international markets. With the latest data we have, the loss of the tools of the Trust or the Kosovo Pension Savings Fund is somewhere in much of 52m euros, compared to over 110m euros were lost at the beginning of the pandemic show. So, we have a recovery of Trust losses and as you can see, we have an improved performance. We also expect a decline in foreign direct and consumer investments. These are the main activities that have characterised the growth or financing of economic growth in Kosovo. Of course, expectations and a decline in demand and credit loss are one of the main factors that have influenced economic growth in the country. A fact should be indicated that only yesterday has a new 1m-euro loan issued. This is very positive and it's good news. It has begun to return normality to banks and issue new loans, which is very positive”, Mehmeti says.

Governor Mehmeti stresses that at this meeting with incumbent Minister Besnik Bislimi, they have proposed that interest rates aimed at supporting economic development and generating new jobs.

Our commitment has not been missed and will not be missed, we have expressed this at the meeting with the minister. The minister's readiness has been to have the CEC have a key role in the economic recovery package... If the need arises, we will review our arrangement, reduce the liquidity reserves and push banks to lend as much as possible. There will also be increases of the Credit Guarantee Fund. The approach of this Fund will increase in relation to the support of businesses we consider to be economic development promoters, for this reason the Fund's role will increase in supporting businesses that are affected by pandemic. Also through this Fund, our proposals are to become a subsidisation of interest rates and many other activities that are in interest and support for economic development and generation of new jobs”, Mehmeti claims.

Mehmeti adds that the CEC will have a key role in this economic recovery plan, and have also expressed readiness to take all necessary measures on the issue.

“What is asked of us, confirming our legal mandate to help economic recovery in the country, in this case we as BQC are also the Kosovo Government agent and we have legal obligation that when it wants to seek advice on our part to assist the government in whatever circumstances it wants now,”, he says.

He also said that understanding the difficulties a part of businesses and employees is facing, the Central Bank, along with the lending institutions, had decided on the release of a period of payment for loan installments (three months, ranging from March 16th 2020 to April 30th 2020) and depending on the development of the situation, this period could be extended to as much as three months. This support, according to the governor, is aimed at facilitating the financial burden for all borrowers who face the difficulty of making incomes as a result of the pandemic crisis.