a few seconds agoDebt up to the throat: Kosovars around 5 billion euros in loans
Periskopi(2 years ago)
(2 years ago)The number of citizens who have taken loans to Kosovo commercial banks has increased for about 13 thousand by November 2023, compared to the same period in the preceding year. Nearly 200 thousand citizens have turned to Kosovo banks for loans this year. Meanwhile, the total amount of loans in [...]
Because interest rates have grown and are not favorable, even citizens say that because of their standard of living, they are obliged to enter debt.
For Kosova Prees, citizen Hysni Thaci said his family received loans, which he said were difficult to get back the means.
At the same time, citizen Sabri Rexha calls the interest rate “According to him, except the need, “people have habit, cannot live without debt”.
Meanwhile, from the Central Bank of Kosovo (BQK) say the total number of loans to recipients is 118 thousand and 102 by November, about 13 thousand more than last year.
In a written response to Kosova Prees, from the CEC stress that the total amount of loans in the banking sector by October of this year is 4.8 billion euros.
They add that the average interest rate for new loans in October 2023 is estimated at 6.4%, which in the same period last year estimated 6.2%.
Also, the Kosovo Banks Association claims that the value of new loans reported by September 2023 has increased for over 1 billion euros, compared to the same period last year.
For Kosovo, they add that this value is 8.91% higher than in 2022.
While founder of the Research Institute for Economics and Finance, Fehmi Mehmeti for Kosova Prees says the increase in lending continues to be high, especially after the pandemic. This growth, Mehmet, values it as good, as according to him it affects the country's economic development.
In addition, the former BEC governor said the pandemic has also affected the rise in inflation. He argued that following the European Central Bank's decision to raise interest rates four times in a row, the American Federal Reserve System, which he claimed would affect growth and inflation across Europe, therefore in Kosovo.
Mehmeti added he expects there will be a decrease in inflation.
In addition to raising loans, deposits have reached the value of 5 billion and 875.9m euros.
While commercial banks in Kosovo have managed to secure high profit during the January-October 2023 period.
According to the recent Kosovo Central Bank report(BQK), for ten months this year from bank loans and other services, commercial banks have made clean profits of 141m euros or about 20m euros more than in the same period last year.
