Still unknown is whether to delay loan installments

Kosovo Central Bank spokesman Kuqirim Ahmeti through a letter has told Kosovas that they will continue to monitor economic and financial sector developments and that a decision will be made accordingly.

From the moment the restrictive measures have been released and the majority of economic activities have started working, and with the departure of restrictive measures, we consider the emergency measures imposed over the past few months to end. However, we will continue to monitor very carefully economic developments and those in the financial sector, in order to make our contribution further to the recovery of the economy, but always by putting in first the preservation of financial stability that is also the primary task of the BQ”, this electronic device was said.

According to the CEC, the value of requirements for postponement of credit installments according to data for the March-May-May 2020 period is 1.95 billion euros, or 63.5% of the total banking sector's active credit portfolio.

While, through this letter, Kosovo Central Bank spokesman Kuqirim Ahmeti said that on June 8th this institution has approved the Credit Restructuring Guide due to Ovid-19, which specifys that credit restructuring requirements are accepted by August 31st 2020.

The Central Bank of the Republic of Kosovo since June 08th, 2020, has approved the Credit Restructuring Guide because of Covid-19, which specifys that credit restructuring requirements are accepted by August 31, 2020, while the issue of abolishing the suspension of classification and privatisation of customers is subject to the corresponding assessment of relevant developments in the economy”, Ahmeti said.

And until a current decision, Kosovo Bank Association Chairman Petrit Balija for Kosova Prees says that regarding the postponement of loan installment payments, it is left to co-operate with creditors and make reprogramming loans in cases where they estimate it is possible.

There is no new decision from now on, but it remains to negotiate with their clients and to do their restructuring or reprogram loans in cases where they appreciate that it is possible and necessary. But that depends on the client's report to the bank and the situation the client can find. There are several categories of businesses, especially for big businesses, corporations will have no difficulties and they will return their loans from now on according to the pre-program and will not demand further postponement because they have enough capacities to get new loans. But it's a segment of the middle businesses that will probably need further consultations with the bank and banks are willing to consider all these cases to investigate and see if possible, necessary to postpone loans further or to become their restructuring depending on the agreement with client”, he said.

As long as Paco's adoption of economic recovery is very necessary, Balija said that even family economies can reprogram installments, but this will not happen for all with automatism, it will depend on financial hardship.

The credit extension program has included family economies, respectively, so I believe the same option is offered to individuals to have a conversation with their bank and find ways to resolve their financial problems. But not automatism, it should not be misunderstood that the extension is automatized for all who make the demand depending on the situation the client is in and depending on the bank's possibility because you know that any delay in return is a problem for the bank. Therefore, it is important to postpone the bank according to the bank's ability and the client's needs. What is most important now to help individuals, but even businesses is the adoption of the Pacos Fiscal for economic recovery by the Kosovo government and the Assembly. If such a package were to be approved then even banks would have more flexibility to make it easy for citizens and businesses because the package envisions some financial mechanisms that help the banking sector. But if the same situation continues where there is no fiscal package, no adequate emergency, and no economic recovery, and the banking sector will find it more difficult to offer assistance to the private sector”, Balija stressed.

The chairman of the Kosovo Economic Ode agrees with this, Berat Rukiqi, who said there is no expected to be postponement of installments in the bloc, as happened last time, but this will be done through reprogramming financial loans.

There will be no delay in the bloc, not to create expectations that there will be a delay in the bloc for all, but what we're trying to define with definition of a modulation even by talking to commercial banks is the chance to develop depending on the case to create a shark for businesses that are facing difficulties or reprogramming financial credit. We assume that even business back to work does not circulate 100 percent as before pandemic in relation to last year and that there is a drop in circulation and carbon this will then allow a postponement or even allow a reprogram of each business's contract. This is in the interest of bank and companies”, Rukiqi said.

On the other hand, the deputy from the Vetevendosje Movement ranks, Mimoza Kusari-Lila, says that at this time when there are increased cases of COVIED-19 in our country, it would be extremely necessary for loan installment payments to be extended for three months.

“It is time to show a clarity on future measures, and if we have worsening the health situation we cannot have economic improvement, nor can we have removal of measures that have been imposed by the preliminary government. Therefore, I see it as necessary to freeze both the debate and the seriousness of discussing what might immediately be done with the previous government's measures, including the extension of the payment of credit deadlines so that citizens other than health problems do not have the heavy financial burden that may be caused to them as a consequence of loss of work and the burden of loans from commercial banks<1>, Kusari-Lila stressed.

The Kosovo Central Bank had made the decision that the deadline for delaying payment of loan installments would be 3 months, from March 16th to June 16th 2020.

The Central Bank had asked banks not to apply punitive interest in credit rating to creditors during the pandemic period, until it had suggested it would not seek additional benefits from these institutions, for extended loans