Vice-Guverner Havolli talks about the political pressures being made for his dismissal

It's a question that we've discussed openly in the BQC, it also wanted working parties, to come to the conclusion if the BQ law has applied, so parliament has been watching The BQK and if it is behind the implementation of the insurance law. We don't mind that we don't have to oversee the Central Bank law enforcement at any moment, but let's do that non-political troops, that's what we've been saying over and over and over and over again, Havol at #Kallx Pernimes.

According to Havol, the Constitution clearly speaks that the Kosovo Central Bank should be independent.

I have no problem, no constitutional problem. Because Sokol Havol won't be able to get a problem, nor will Fehmi Mehmet be able to stay out of trouble, but see what the Constitution says. The constitution says the Central Bank should fully respect the independence of the Central Bank and also all laws issued for the CEC should be adjusted to the respective constitutional laws and provisions, to ensure that the constitutionality is implemented”, Havolli added.

He says his task is independently exercised without being influenced by politics.

You're under political pressure?

“We have seen this as a relatively problematic issue, the issue that the Commission has raised to establish working groups without the implementation of the BEC law, our belief is that this would violate the Central Bank. We are willing to face and face this mandate and the other” mandates, Havolli replied.

“You have been without a board for a year without supervision, you have not been under surveillance since”, Jarra continued.

“We have signed dozens of judicial processes as a result of our decision-making, whether in the post-board period, or in the period we don't have on board, or today we face court processes that the previous board has taken into account and the BQKK every judicial process of 1 to last gets”, Havoli said.

In a letter that KALLXO.com has provided through resources within one of the embassies of the QUINT states, the Governor says there is no reason to dismiss Havol.

I'm almost on a daily basis under political pressure to dismiss Mr. Sokol Havolli, even though there is no objective reason to do so and despite the legal assurance of his mandate. Except for his excellent performance in the BQC, Mr. Havolli is also the key witness in the arbitrage process between Kosovo and lute Credit Europe. As such, personal assault on Mr. Havolly is at great risk to this arbitration process, expected to be completed in February 2023”, Mehmet wrote.

Even in this case, Havoli has an answer he says one of the board members has mentioned that the same should resign from office in the CEC.

This has actually been since the start of the board's functionality. I was a little surprised that the hand in my heart you could not agree with, but the adjustments that took place in the financial industry in Kosovo have been unimaginable to many people, and my faith has been that every institution would appreciate positive work. The board has already been completed and a board member, Bashkim Nuboro, and his request has been that through a few people with Sokoli convinced me that they have to go”, Havol explains.

He's been countering this selection work”, calling Jarra, Havol.

I'm not worried about conflicting the choice. Today, anyone can't stop him in court with Sokoli saying he's not a good choice”, Havol says, until Jarra tells him the process can last up to 10 years.

“No, I'm not worried that I have the right to complaint at the Supreme Court, and that's 72 hours and that's the interim measure”, Havoli continues.

I've expected that the results of the job will be assessed because you've had an industry that's been in legal violation and in a period more than I've expected, and we've come up with a highly problematic industry in accordance with the Law, which is my market from some of our common friends with the Union. He knows that there's been a good outcome of his job, I can't say that he directly said that Sokoli had a lot of contributions, I can't say this, but he indirectly agreed with these friends. But he has asked Sokoli to step down because he should, because if he resigns, we give him the salary of 70% as it is by law, and if Sokoli doesn't resign, he needs to find something, and with the stick of”, he keeps pointing.

Havolly added that his choice in the position of Deputy Governor has been highly discussed.

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Governor Fehmi Mehmeti has also informed the ambassador that the Assembly of Kosovo (through the Commission for Business, Work and Transfere) has put the establishment of a task-worked task group into order the implementation and supervision of the Law for Central Bank and Security Law.

Mehmeti has written that this political decision certainly interferes with the independence of the Central Bank of the Republic of Kosovo, as well as weakens the Central Bank's report with international mechanisms.

Political “Institutions, such as the Parliament, cannot (and shouldn't) have the powers to conduct inspections in the Central Bank's spaces and intervene in its” work, says Mehmet's letter.

The governor has said they will make public the pressure they have on the Central Bank in order to expose “the legality of such actions and inform the broad opinion of the possible consequences for the country's economy in general”.

Mehmeti says the letter to the ambassador is sending him enough to inform about developments in the CEC.

This is Governor Fehmi Mehmet's full letter to the ambassador:

Your Honor,

Through this letter, let me draw your attention to certain developments in Kosovo's financial sector, as well as to some recent issues involving the independence and autonomy of the Central Bank of Kosovo, guaranteed under the Constitution of Kosovo and the Law for the Central Bank.

The financial sector in the Republic of Kosovo is one of the most stable and successful sectors. With joint efforts, including partner institutions such as your esteemed embassy, we have been able to build and support a professional and independent Central Bank over the years. As a result of responsible governance as well as the Central Bank's independence, cut off from daily politics, the financial sector in Kosovo has been one of the main stories of success in the country. International reports (such as the European Commission's Report for 2021) list Kosovo's financial sector as very successful, having met all the applicable standards that were part of the Central Bank's competencies and responsibilities. Similar findings are found in national reports, such as the EPIK, a nongovernmental organization, in the 2021 report.

The Central Bank has managed to overcome even the biggest challenges for the financial system, such as COVID-19 and the current war in Ukraine, through adapted policies within the country that have provided stability like no other in the region. In a limited economy due to the deadlocking measures, however, we managed to keep a low level of credit problem, high capitalisation and high liquidity in the sector, in addition to increasing competitiveness by licensed new institutions. Moreover, in the last three years we have achieved that the insurance sector is in full compliance with the regulatory framework and that we now target liberalisation of the TPL product market, being the first country in the region to adopt such modern practices.

In view of this success story of the Central Bank of Kosovo, it is strange and at the same time disturbing that the Kosovo Parliament's current legislature is trying to politically interfere with the independence and guaranteed autonomy with the Central Bank's Constitution (nenet 11 and 140 of the Constitution).

Recently, the Assembly of Kosovo (through the Commission for Business, Work and Transfere) has introduced the founding of a task-working group to implement and oversee the Law for the Central Bank and Security Law in order. This political decision certainly interferes with the independence of the Central Bank of the Republic of Kosovo, as well as weakens the Central Bank's report with international mechanisms (and thus weakens the stability of Kosovo's financial sector). Political institutions, such as the Parliament, cannot (and should not) have the powers to conduct inspections in central bank spaces and interfere with its work. Moreover, almost on a daily basis I am under political pressure to dismiss the deputy governor. Mr. Sokol Havolli, even though there is no objective reason to do so and despite the legal assurance of his mandate. Except for his excellent performance in the BQC, Mr. Havolli is also the key witness in the arbitrage process between Kosovo and lute Credit Europe. As such, personal assault on Mr. Havolly risks this arbitration process, expected to be completed in February 2023.

Such disregard for the Constitution and relevant laws from the current political spectrum should not go unnoticed. So far, we've refrained from publicizing this issue, as we believe this could be temporary and we've managed to convince the political spectrum of the necessity of the CEC's independence. Because smaller measures do not appear to be functioning, the Kosovo Central Bank plans to initiate public communication, exposing the legality of such actions and informing the broad opinion of the possible consequences for the country's economy in general. Since your respected embassy has contributed greatly to the development of the Central Bank, I found it necessary to inform you of these difficult developments and of our further steps.

In the end, I want to express the heartfelt gratitude of the Central Bank of the Republic of Kosovo for the continued and necessary support of your honoured Embassy to our institution, and I take the opportunity to invite you to honor us with a visit to the Central Bank of the Republic of Kosovo for further discussion of these issues.

Honestly,

Fehmi Mehmeti

Governor

Central Bank of the Republic of Kosovo