Businesses call for postponement of credit installments, BEC says it has made a better solution than postponement

Even though the business community and citizens have consistently sought to postpone loan installments for three months, the Kosovo Central Bank has developed a guide for commercial banks depending on the client's insolvency to have the opportunity to reprogram loans by counting on interest. As the Kosovo government continues to remain silent and not support businesses in covering interests.

Unlike Kosovo, several other countries have allowed loan installment payments to be extended again.

The chairman of Kosovo's Afarism Ode Board(OAK), Skender Krasniqi, tells Kosovo that putting off credit installments is necessary for businesses, because according to him, companies and citizens will have trouble paying interest rates and installments at this time.

Krasniqi says businesses are in serious condition, as they face difficulties for access to finance, and thus are also in danger of going bankrupt.

Kosovo's Oda of Afarism Board Chairman Skender Krasniqi

With the beginning of the pandemic, banks have even stopped giving regular loans, and have not yet begun to lend. Then the request is to extend payments and loan installments to those in need. But it also requires postponing installments for tax rates that are most necessary. The interest in this postponement will be taken over by the state and not accommodated by business and citizens, because at the start of the payment, businesses and citizens will have huge credit payment difficulties. It will be a burden to business, as well as the risk of business bankruptcy and increasing unemployment”, Krasniqi says.

On the other hand, BEC Governor Fehmi Mehmeti tells Kosovo that they have made a better solution than the postponement, which is unique by means of a reprogramming of loans.

He has added that commercial banks are releasing loans even in time of pandemic.

BQQ Governor Fehmi Mehmeti

“We have made a much better solution than the extension, which is particularly taken into account that we have also received IMF recommendations on how to operate banks during pandemic and after pandemic in order to support the overall economy sector. And in this conflict we have prepared a guideline that we have approved and sent banks as guides, in order that banks depending on the client's payment capacity have the opportunity to reprogram or reprogram loans without having to have additional profits. Therefore, this is a benefit of two partials as to banks, because even for banks it is not inert to have bad loans. Given that if bad loans increase, banks must share capital for this. But, at the same time, for companies to also pay their installments according to their means, or if the need for a margin period and so on, says Mehmeti.

He has added that the CEC has been one of the first institutions in the country that has reacted to the pandemic and in co-ordination with the banking association, have been postponed for three months in installments from 16 March to 16 June.

Unlike Kosovo, several other countries have allowed loan installment payments to be extended again.

In Albania, it has been possible that payments of loan installments could be postponed another three months, making a six-month extension.