emg home
City deserted because of sludge from Mount Merapi volcano Strong earthquake hits eastern Japan Russian donation for reconstruction of Serbian monuments in Kosovo-Metohija Serbian Assembly adopts 2010 Budget review Real Sector Development: Foundation for recovery and growth of national economy EU recovery taking hold, but progress uneven Dinkic: Government supports investments in Raska Region Cooperation with EULEX to increase security in northern Kosovo-Metohija Sanader might be accused Snowmaking equipment installed on Zlatibor Plan on cooperation between Serbia and Hungary signed Council of Europe rapporteurs meet with Serbian MPs U.S. Ambassador announces better standard with integration Brazilian MoD visits Belgrade Wikileaks provide inside information for Turkish-U.S. relations FYRMacedonia gets new political party World leaders, officials watch WikiLeaks with curiosity, concern Arbitration Arrangement: Slovenia and Croatia exchange diplomatic notes US Embassy to Bucharest:: Field reporting doesn't shape final policy decisions Greece: Media strike on Tuesday ANA-MPA joins anti-smoking campaign, launches new web page Greece: Civil mobilisation ordered EC says recession in Croatia halted American government refers to Croatia in 1,686 leaked documents November temperature hits record level in Bulgaria One ship sinks in collision off Bulgarian coast, no oil spills Sarajevo: Conference on justice and security cooperation in South East Europe Thousands of leaked cables from ex-Yugoslavia Rama: It Is time for a new model of Government WikiLeaks publishes 822 secret documents on Albania WikiLeaks publishes 668 secret documents on Kosovo RSD 20,000 to 120,000 for repairing houses in Kraljevo Students in front of Serbian government with blankets, tents Inzko: BiH will get candidate status in four-five years WikiLeaks allegations cannot hurt Serbia 40 tons of marijuana, weapons and ammunition seized Snow causes chaos at Munich airport Skundric to attend Sofia Energy Conference Regional forum for boosting research in ICT sector Dinkic to open Tulip Inn Putnik Hotel Foreign ambassadors in Novi Pazar and Sjenica Albanian Flag Day marked in Kosovo Taci: Dialogue with Belgrade in February, but not on Kosovo

Kosovo seeks investment in banks as economic growth quickens

29. November 2010. | 06:23

Source: Bloomberg

Kosovo wants to lure investment into its banking industry to increase competition and spur lending as the economy of Europe’s youngest state accelerates, acting central bank Governor Gani Gerguri said.

Kosovo wants to lure investment into its banking industry to increase competition and spur lending as the economy of Europe’s youngest state accelerates, acting central bank Governor Gani Gerguri said.

“There is still plenty of opportunity for new players and as a regulator, we would like to see big regional banks entering Kosovo to increase competition,” Gani Gerguri, the acting central bank Governor of Kosovo said in an interview in Pristina on Nov. 23. “I don’t want to mention any names but I am talking about banks that dominate the markets in southeast Europe.”

Eight banks are currently operating in Kosovo, which unilaterally declared independence from Serbia in 2008, with units of Germany’s ProCredit Holding AG, Raiffeisen Bank International AG of Austria and Slovenia’s Nova Ljubljanska Banka d.d. holding a combined 78 percent of the market, according to the central bank.

The economy of Kosovo, which has a 90 percent ethnic- Albanian population, is powered by exports, foreign direct investments and remittances from Kosovars living in Western Europe, making up to 15 percent of the country’s gross domestic product, according to the United Nations Development Program report.

Direct investments, mostly in the banking and insurance industries, according to Gerguri, dropped to 281.6 million euros ($375.5 million)last year from 366.7 million euros in 2008.

UniCredit is the biggest lender in emerging Europe as a whole, with 107.6 billion euros in assets, ahead of Erste Group Bank AG, Raiffeisenbank International AG and Societe Generale SA.

Remittances Fall

“Our financial sector wasn’t directly affected by the global financial crisis because the banking sector was not exposed so much to the rest of the world,” he said. “Remittances have dropped slightly during the crisis, which is actually good for the sustainability of the economy and the financial sector.”

Kosovo’s GDP is forecast to expand an annual 5.9 percent next year, the fastest pace in the Balkans, after an estimated 4.6 percent growth this year and 4 percent in 2009, Gerguri said. That compares with Slovenia’s forecast for 0.9 growth this year and 2.5 in 2011, according to the Ljubljana-based government’s economic institute.

The country agreed in July to a 110 million-euro aid package from the International Monetary Fund. The total amount pledged by international donors, including the World Bank and European Commission, has increased to 320 million euros, Economy and Finance Minister Ahmet Shala said in an interview earlier this month.

Kosovo, like its Adriatic Sea neighbor Montenegro, has been unilaterally using the euro since 2002, providing the country with the macroeconomic stability, according to the central banker.

Gerguri was named acting central bank chief after the July arrest of Hashim Rexhepi who is accused of corruption, abuse of authority, tax evasion and money laundering. Rexhepi was released on bail on Nov. 18 with his lawyer denying all the accusations.


My Web

Enter text:


29. November - 05. December 2010.