Banks in Kosovo ready to lend to recover economy

In the phase of economic recovery, which is expected to begin next week, the banking sector will also play a significant role.

From the Kosovo Banks Association ( The USBK says the entire fiscal package will be passed through the banking sector, so capacities are required to be used to enable liquidity in the economy.

But to achieve this requires co-ordination of institutions, until the functionality of the Parliament is causing a dangerous delay for Kosovo's economy, the director of Bank Associations, Petrit Balija, announced.

“The banking sector will play an important role in the phase of economic recovery, which is beginning and must have an added dynamic. More coordination is needed by institutions and working groups that are formed for economic recovery”.

The entire previous fiscal package will circulate through the banking sector. We have a layer of population with serious socioeconomic conditions and a large number of micro-businessers who have financial difficulties. So use the capacity of the banking sector to enable greater liquidity in the economy”.

Out of the package of economic recovery, Balija says they have sought credit guarantees as well as subvention of interest rates.

And businesses that cannot afford normal credit prices are subjected to a part of the interest rate for overcoming the situation.

“We have demanded that the capital increase for the funding for credit guarantees significantly, so that through guaranteeing these loans, the banking sector will burst its liquidity on the market. We've also asked to become a subsidy of interest rates within the second fiscal package”.

“Businesses which cannot afford normal credit prices then become a subvention of a portion of the interest rate and enable each of the businesses to take credit for overcoming the” situation, he said of Online Economy.

He says commercial banks are willing to offer loans, but that state mechanisms must exist.

The USBK director stressed that he is feeling afraid that institutions have been delayed, as he said the non-functionality of the Parliament is causing a dangerous delay for Kosovo's economy.

If the first packages are not approved in the Parliament, Batija declared there will be major financial-economic problems.

The subx0> Commercial banks are ready to lend, but there must be these state mechanisms that affect this situation. I fear that institutions are being delayed, the functioning of the Parliament is causing a dangerous delay for Kosovo's economy. If it doesn't get out of this political situation, we don't approve in the pre-recognition packages, we'll have financial and economic problems especially for those segments that have been hit hard by David-19”, he added.

However, in terms of postponing the loan tranche, Balija pleaded that it was in accordance with customers, depending on their situation.

“Banks have applied various models depending on the client's situation. What's in principle what the installments are pushing for a period of time in compliance with customers. After passing this stage the client will pay under the new” plan, he announces.