Balija: Loan approval by Kosovo Banks reaches record levels since the post-war period

Based on data reported for the last period of July 2020, the level of new loans approved for this month alone amounted to 181.5 million euros - the highest value since the establishment of the banking system in Kosovo. Chief Executive of the Kosovo Banking Association, Mr. Petrit Balija said that this record value achieved by the banking sector has been reached, although the first six months of 2020 have turned out to be with great challenges from the severe impact of the global pandemic COVID-19, resulting in major consequences for both human health as well as for different sectors of the economy.

In addition, Balija said that the purpose of the banking sector is to continue lending to Kosovo's economy by enabling businesses and households to have access to finance in these circumstances when more liquidity is required for the Kosovo's economy, 

Recent data show that in addition to high lending, banks have also approved a significant number of applications for deferral of loan payments in the amount of 1.5 billion euros, thus creating the necessary flexibility in the economy during this period.

The average effective interest rate on loans has marked significant decline in recent years, reaching 6.2%, a rate that is on average in the region.

The Kosovo Banking Association has announced that it welcomes the approval of the draft law on economic recovery and appeals to the Assembly of the Republic of Kosovo to adopt this law as soon as possible and implement it to save the economy of Kosovo.