Fehmi Mehmeti: Bank lending is continuing to contribute to
economic growth
Speech by Mr Fehmi Mehmeti, Governor of the Central Bank of the Republic of Kosovo, at a
press conference, 25 November 2021.
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Dear ...,
It is a special pleasure to be part of this ceremony that marks another step of the very important
contribution that KFW has continuously given to the development of the Kosovo Credit
Guarantee Fund and in general to the economic development of Kosovo.
The Kosovo Credit Guarantee Fund within a relatively short period of time has managed to
become a very important institution for increasing and facilitating financing for the country's
economy. The important role of this institution has emerged especially during the period of
pandemic crisis, in which case this institution has served as a very effective mechanism of
transmission and multiplication of state aid for the private sector of the country.
The grant that is being donated by KFW will enable the further increase of the guarantee potential
of this institution, making possible the increase of the number of beneficiaries from the
guarantees issued by this institution. In other words, a larger number of individuals or businesses
with difficulty accessing credit financing will be able to secure access to this source of financing
on favorable terms.
Bank lending continues to be a very important and sustainable source of private sector financing
in Kosovo. The value of bank loans by September 2021 has reached 3.57 billion euros, marking a
significant annual increase of 12.2%. However, despite the satisfactory trend of increasing bank
lending, it is considered that the level of financial intermediation in Kosovo continues to be below
the average of the countries in the region, which shows that, in relation to
the size of the economy, there is further room for expansion of the lending activity.
An important role in filling this space has exactly the Kosovo Credit Guarantee Fund, which
through its guarantee mechanism can enable the increase of lending and the facilitation of the
conditions of access to credit for the sectors which without this service may find it difficult or
even impossible to provide access to credit financing. In this context, we expect that in addition to
supporting the growth of credit financing in general, the KCGF portfolio, more and more to reflect
the increase of credit support for sectors with greater difficulties in accessing credit financing,
but which have the potential to make a significant contribution to the economic development of
the country.
In the end, allow me to once again express my highest appreciation to KFW, which has
consistently proven to be a very important supporter of Kosovo's economic development.