fehmi mehmeti : the central bank of the republic of kosovo continues to support and push the financial sector to increase support to the economy, especially export businesses speech by mr fehmi mehmeti, governor of the central bank of the republic of kosovo, at the launch of the " export window ", pristina, 15 december 2022. * * * dear ms. minister, the honourable mr. mike, the honourable mr. berisha dear attendees it is a special pleasure to be part of this ceremony which marks a very important step of the launch of the export window. allow me, on behalf of the central bank of the republic of kosovo, to congratulate the kosovo credit guarantee fund and usaid ( kosovo compete activity ) for launching a new window for financial facilitating called the " export window ". the kosovo credit guarantee fund, with the support of our international friends, within a relatively short period of time has managed to transform into a very important institution, playing a very important role in increasing and facilitating financing for the country's economy. bank lending continues to be a very important and stable source of private sector financing in kosovo. the value of banking sector loans until october 2022 has reached 4. 3 billion euros, marking an annual increase of 17. 9 %. however, despite the satisfactory trend of the growth of bank lending, it is considered that the level of financial intermediation in kosovo should increase even further, and 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 is played by the kosovo credit guarantee fund, which, through its guarantee mechanism, will enable the increase in credit and ease the conditions of access to credit even for the extremely important sectors that ensure the economic development of the country. the new export window, which aims to issue new guarantees to partner financial institutions for the benefit of micro, small and medium enterprises, especially for exportfocused businesses, is good news for businesses and the economy of the country. in this period where our economy, and not only, has had negative impacts, firstly from the pandemic and recently also from the russian aggression in ukraine, it is very important to help our enterprises, to increase the export as much as possible. 1 / 2 bis - central bankers'speeches until october of this year, the value of exports reached the amount of 774. 4 million euros. this amount represents an increase of over 160 million

, where in december 2022 the level of total deposits was 5. 55 billion euros, an increase of 2. 19 billion euros or 65. 1 percent in the 2022 time horizon compared to 2018. the banking sector throughout this period, despite the continuous double - digit growth of lending, has continued to be well capitalized and liquid. the liquidity ratio of the banking sector continues to be high and above the regulatory requirements of the cbk. the banking sector had the highest level of liquidity during the pandemic period, in 2020, which was 39. 8 percent, while in december 2022 this ratio was 36. 5 percent, higher than the required regulatory minimum of 25 percent. the 2 / 5 bis - central bankers'speeches liquidity coverage ratio ( lcr - liquidity coverage ratio ) is at the level of 212. 1 percent, which is much higher than the required level of 100 percent ( in the third quarter of 2022, this indicator in the eurozone countries was at the level of 162 percent ). the banks'own capital has continued to increase, despite the approval of the distribution of dividends individually for the banks during the last 5 years. as of december 31, 2022, the capital value of the banking sector is 699 million euros from 497 million euros at the end of 2018. while the capital adequacy indicator continues to be above the required regulatory minimum throughout this period, or about 14. 8 percent in end of 2022. in addition to the banking sector, the mfi - nbfi have also recorded a stable performance, where at the end of 2022 the value of the assets of this sector was 387. 7 million euros, an increase of 146. 1 million euros, or 60. 5 percent compared to 2018. as in banks, the main item also among mfi - nbfi are loans that in december 2022 marked the value of 351 million euros, or an increase of 128. 9 million euros or 58. 0 percent, compared to 2018. the stable and qualitative growth of loans is also confirmed by the level of non - performing loans in relation to total loans that at the end of 2022 was 1. 8 percent, lower compared to 2018 when it was 2. 2 %. in relation to this sector, in 2019 the cbk withdrew the registration ( license ) of two institutions, iutecredit and monego. both of these institutions have made numerous court appeals