Cooperation agreement was signed regarding the promotion of Sustainable Financing and Environmental, Social and Governance standards in the banking sector in the Republic of Kosovo
Today, in Pristina, an important event took place in the field of finance and sustainable economy. Kosovo Banking Association (KBA) and International Financial Corporation (IFC), a member of the World Bank Group, signed a cooperation agreement for the promotion of Sustainable Financing and Environmental, Social and Governance (ESG) standards in the banking sector in Republic of Kosovo.
This agreement is of special importance for the banking sector in Kosovo and for the development of the country's economy. By signing this agreement, KBA and IFC showed commitment to promote sustainable banking and to integrate environmental, social and governance aspects in their practices.
At the opening of the discussion, the Chairman of the Board of Directors of KBA, Mr. Suat Bakkal, expressed his support for the participation of the banking sector in the journey towards a stable economy. He emphasized that financial institutions have the opportunity to contribute greatly by providing new funding opportunities for sustainable projects by implementing the best international practices in accordance with ESG standards.
While Acting Deputy Governor, Mr. Nexhat Kryeziu, underlined the importance of this development agenda for the Republic of Kosovo. He emphasized that the banking sector is the main component in the country's economy and its impact is very significant. Therefore Mr. Kryeziu emphasized that it is the aim of the Central Bank of Kosovo (CBK) to facilitate the journey towards a green economy by including best supervisory practices and strategies which will serve as a guide towards common solutions.
Chief Executive Officer of KBA, Mr. Petrit Balija, emphasized the importance of this agreement and its potential to influence the coming decades. He expressed his satisfaction that KBA and IFC co-organized this event and appreciated the support of CBK in this matter. Balija emphasized that cooperation in this field requires coordination of actions by all actors and believes that this partnership will promote innovation and open the way for new approaches to sustainable banking.
Mr. Visar Perani, IFC`s Country Officer for Kosovo, showed their commitment to strengthening the regulatory environment for ESG and supporting the banking sector in Kosovo. He announced that this event is part of IFC's numerous activities in terms of promoting Sustainable Financing and ESG standards, and that all IFC activities in Kosovo are supported by the Swiss State Secretariat for Economic Affairs (SECO). Perani expressed his optimism for the cooperation with KBA and the belief that Kosovo, having this type of cooperation, will be a regional leader in the field of ESG, taking into account the strong component of capacities and awareness offered by their program, which will be implemented together with KBA.
Mr. Blerim Terziqi, Senior Advisor to the Governor at CBK, congratulated the banking sector for their dedication to the cause of sustainable financing. He shared with those present that CBK is working on strategies that will serve as a transitional period towards a sustainable banking in cooperation with the commercial banks of Kosovo.
This partnership between KBA and IFC implies a shared vision and commitment to promote sustainable banking and environmental, social and governance (ESG) integration. Through this collaboration, KBA and IFC will work closely to implement innovative strategies, to develop industry standards and further promote sustainable banking.
This agreement marks an important step towards changing and improving financial practices in Kosovo. Through this partnership, KBA and IFC are committed to increase the information and capacity of the banking sector regarding sustainable financing and help promote ESG standards among business enterprises as an important partner in achieving these goals.The signing of this agreement is an important signal for investors and financial institutions in Kosovo. It marks the commitment of all parties to change traditional banking paradigms and to focus financial resources towards sustainable projects and initiatives.
In conclusion, the agreement signed today between KBA and IFC highlights the commitment of both parties to promote sustainable financing and influence high environmental, social and governance standards. This agreement will strengthen the role of the banking sector in building a green economy and will lead to the advancement of corporate responsibility and the financial market in Kosovo.
For the editors:
Kosovo Banking Association (KBA) is the organization that represents and protects the interests of commercial banks in the Republic of Kosovo.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.