Kosovars in debt up to “Life on the Credit

I'm going to get my life on credit”, “Money like file-off”, these are some of the complaints of Kosovo citizens who say they suffer pressures and stress from commercial banks for returning financial means with high interest rates.

The number of creditors during 2024 has reached over 36 thousand, which are directed to Kosovo commercial banks to obtain loans. See that over a thousand higher than in the same period of the year. While the total amount of gross loans in the banking sector until December of the year we left behind has reached 5 billion of 810m euros, with increases of over 131m euros, or 2.32 per cent compared to the previous month, Kosovas reports.

Of the total amount of gross loans, there are about 2. 3 billion euros, and companies around 3. 5 billion euros.

The CEC disclosed to Kosovo that the average interest rate on new loans during January-October 2024 is 6.16 per cent.

But, citizens' money tools, they're pushing them to take credit to the country's commercial banks.

Citizen Imer Bajgora says that since the post-war has been forced to enter credit, as he says, “to free himself”, since he does, he does not have enough wages to receive. In this respect, he complains that the interest rates are too high.

My life went into credit. After the war, we're only living on credit. Why don't you have your wages? Of course we don't have our wages. Expensive life has become... the very worst in the world that exists, in us are... to release itself into loans, not to ask someone to borrow money, enter the state... ( The interest must be lower, up to 2-3 percent more so they need to be, that enough are winning”, Bigora says.

Essential but harmful in a financial way, he values credit Skender Prenqi. He says that to buy a flat or a car, credit is needed because as he puts it, wages are low.

Kamatat, Prenqi calls “as if it's precaution”.

“How do you view credit interest in Kosovo? They're too high, like money with legal file, that's what they are, they're too high... We each have loans and we have had loans in the past. We know that the interest rate is too high... when there's a big plan or when there's something that you want to make bigger, or a flat or a car or something you have to take credit, because with the actual salary it's a problem... Do you see the loan as something positive or negative? I see it as something for many necessary people, but in terms of financial and economic, it's harmful because the daggers are too high”, Prenqi relates.

Adem Wessel relates the stress he experienced during the time you received a loan. He shows he won't go into debt anymore, because according to him, “is katstrophe”.

“are very high, especially for wages, for high standards. I can say in Europe they're probably higher... I've made the loan, but I'm guaranteeing that 80 percent of civil servants, educators, almost 80 percent are loans... have you considered taking back credit? No, it's a disaster. It's a disaster to take in credit because it's really high interest rates. Have you had trouble getting the vehicles back? How come we didn't have any trouble. I've been under stress, my whole salary's been stopping for a month. That I had economic difficulties at the time had to go into loans when I went all the way out. Not credits, but these are burglary in some form, especially in Kosovo”, says Wessel.

Meanwhile, from the Kosovo Central Bank (BQK) say of Kosova pris that the total number of creditors is 36 thousand and 60 by October 2024 or 1,000 and 31 more than in the same period last year.

The number of creditors for the period 1 January 2023 to December 11, 2023 was 35,029, while for January 1st, 2017 to December 11, 2024 is 36,060. An increase of 1,031 creditors, or 2.94%, in 2024 compared to 2023. The average interest rate in new loans during the January-October 2024 period is 6.16%, while in the same period of the previous year it was 6.49%”, they say in a written response from the BQK for KosovaPress.

While bank sector connoisseur Milazim Abazi estimates that increasing loans in Kosovo represents development and strengthening of citizens' material positions.

Rating represents development, strengthening the citizens' material position. However, increasing social aid represents poverty. Credit is developing, while social assistance is poverty. There's a positive side. The more the loan increases, the better it is for Kosovo's economy and the family economy. If Kosovo had more sources of funding, it would certainly still receive loans and there would be a greater economic growth of”, Abazi says.

Ahaz tells Kosovo that competition should be increased in the banking sector, with the arrival of Europe's most powerful banks.

Negative “ents, Kosovo still needs to increase bank licenses. The market should be opened for the arrival of Europe's most powerful banks to come to Kosovo in order to increase Kosovo's credit potential”, Abazi indicates.

Meanwhile, economics expert Musaf Kadrijaj says management of personal finances among Kosovo citizens is not at the right level. He calls it scandalous entry into loans to buy cars or vacations.

If we talk in the market economy, do business and do economics, it's very normal to even put business into loans. Also in family investments, but unfortunately, obtaining these loans in most cases is not about investments, but about something very urgent that they can't seem to be coping with their incomes. Whether it's about an investment in the home or they're involved in something of luxury, which can also include cars at certain times or on vacation, it's scandalous. But fortunately, there have been such cases. Here it turns out that even personal finance management in Kosovo citizens is not at the right level and it is always turning out that they are having family problems”, Kadrija says.

In addition, Kadrija stresses that high credit interest in Kosovo is damaging business more and more.

The “Daggers are high and still, in fact, commercial banks in Kosovo have some reasons that are banal to me from now on. From now on, Kosovo is witnessing every day that the legal and functional side in Kosovo is stable... fortunately not good, this kind of doing business to banks I appreciate this does not match the market economy. Instead of being an infusion of economics and businesses, I appreciate that these are damaging daily and more business in the country”, Kadrijaj points out.

While, around 160m euros is the clean profit of commercial banks from January to October 2024.

In addition to raising loans (rests) to customers in December of the following year have reached the value of 6.92 billion euros, growth for 342.77m euros, or 5.21 percent, compared to the previous month.

From the accumulated value of customer deposits, some 28.89 percent are deadlined. According to sectors, family economies dominate by about 65.09% of the total value of savings, or about 4.51 billion euros.