of which during this period amounted to eur 3. 2 billion, which represents an annual growth of 6. 9 %. interest rates on loans continued to decline which decreased to 6. 6 % from 6. 8 % in the same period last year, indicating the continued ease of access to bank financing. financial health indicators continued to show a high level of sustainability of this sector in all respects. in particular, it is worth mentioning the very good quality of the loan portfolio with a non - performing loans ratio of only 2. 7 % in october 2018, which, compared to last year when it was 3. 6 %, marked a further decrease. * * * page 2 of 6 other sectors of the financial system were also characterized by favourable developments. the value of assets of the pension sector in september 2018 amounted to eur 1. 76 billion, marking an annual growth of 11. 2 %. return on pension fund investments continued to be positive, indicating an increase in the value of pension savings of citizens. * * * the insurance sector continued to increase its insurance activity as well as compensate the insured against damages. the total written premium value of insurance companies in september 2018 was eur 69. 1 million, which represents an annual growth of 4. 8 %. on the other hand, the value of the damages paid amounted to eur 31. 5 million, marking an annual growth of 8. 2 %. increased damages paid, in addition to increasing the number of insurance policies, also reflect the more responsible behaviour of insurance companies against insured persons. the insurance sector has continued to have positive financial performance for the second consecutive year, which represents a very important development for the sustainability of this sector. * * * another important sector of the financial system is the microfinance institutions sector, which is continuing to accelerate the lending rate, becoming a sector that is increasingly contributing to the growth of competition in the credit market. the total value of this sector's loans in october 2018 amounted to eur 177. 7 million, marking an annual growth of 29. 1 %. however, a falling interest rate from the current average level of 23. 1 % would make this sector even more competitive and with greater role in supporting the domestic economy. page 3 of 6 * * * the central bank of the republic of kosovo with all its capacities has continued to supporti the sustainable development of the financial system, providing all the necessary infrastructure to support the development of financial institutions and at the same time ensuring that

dear journalists and media representatives, i feel honoured to meet you today to jointly mark the end of a successful year for the central bank of the republic of kosovo and the country's financial system, which with its activity has continued to be a very important contributor to the support of development and stability of the country's economy. effective communication with the media on a continuous basis has, without a doubt, been part of this success. cbk has continuously paid special attention to public transparency, by being open to media regarding all public interest issues. in order to further advance our cooperation, during this year, we have also organized a workshop with journalists where we had the opportunity to talk closely about important topics related to the work of cbk and the financial system of kosovo. in addition, in order to facilitate access to information for journalists, we have appointed a cbk spokesman who greatly facilitated communication between the cbk and the media. these all indicate that we are continuing to advance our transparency towards the public and we remain committed to continue this in the future. * * * now, please allow me present to you a summary of the developments that characterized the country's economy and the financial system during 2018, taking into account the latest available data. * * * preliminary estimates suggest that the country's economy during 2018 recorded a real growth rate of about 4 %, mainly supported by the increase in domestic demand, while the deepening of trade deficit had a negative impact on the growth page 1 of 6 rate. the factors with the most significant impact on the financing of economic growth included the acceleration of credit growth for the private sector, the increase of public expenditures and the increase of remittances, which by september amounted to euro 587, 9 million, which is 6. 1 % higher compared to the same period last year. kosovo's economy, as estimated by cbk, is expected to have the similar economic growth rate next year, when the real growth rate is expected to be around 4. 2 %. as regards developments at the general price level, the average inflation rate by the end of 2018 is expected to be around 1 %. * * * banking activity during this year was characterized by credit growth, improved conditions for private sector access to loans, and further strengthening of the sustainability situation. banking sector loans amounted to eur 2. 7 billion in october 2018, recording an annual growth of 11. 6 %. the main source of financing of banking sector activity remains deposits, the value