BEC: Kosovars are in loans of 4.1 billion euros

Commercial banks in Kosovo individually define interest rates based on their business policies.

From the Association of Banks of Kosovo, stress that there is a slight increase in interest rates for non-financial corporate loans, while there is a decrease in family economy.

Based on laws and regulations in power, commercial banks in Kosovo individually define interest rates based on their business policies. Representatives of commercial banks in Kosovo refuse to talk to the microphone about increasing credit interest.

From the Kosovo Banks Association, in a response to Radio Kosovo confirms that it is a slight increase in interest rates for non-financial corporate loans, while there is a slight decline in interest rates for loans of family economies.

The effective rate for loans issued for non-financial corporations at the end of August 2022 was 6.05 percent in contrast to the end of 2021 when 5.72 percent, while for family economies in August 2022 was 5.89 percent in contrast with 5. 95 per cent, said in electronic response from the Kosovo Banks Association.

Representatives from the Kosovo Alliance of Business, Agim Sahini, tell Radio Kosovo that increasing banking interest weakens the economy and investments.

“All businesses in Kosovo, despite the difficulties of taking credit and despite interest being high in the past, has already become higher, and this could weaken economic competitiveness in the country, be it, producer, maid or commercial”, Sahin says.

For economic expert Safet Gerjaliu, growth has resulted from increased interest rates by the Central European Bank. He says 40 per cent of businessmen in Kosovo need financial means.

If this trend continues and this trend continues, I am afraid that the greatest concern will be to increase bad debt, because with this form of development and with this lack of public-private dialogue and with this lack of private sector support, it will be very difficult for the private sector to afford credit returns, and where most businesses are in bank loans”, Grjaliu says.

Kosovo Central Bank data shows that the average interest rate in new loans for the August period was 5.99 per cent. In Kosovo, 11 commercial banks operate and credit value for July has reached 4.1 billion euros, the Kosovo Central Bank spokesman, Kufja Ahmeti, told Radio Kosovo.