The Governor of the Central Bank of Kosovo, Fehmi Mehmeti said that the economic growth for 2021 is estimated to be 10.5 percent. According to him, 1.8 billion euros in loans have been provided within this period.
The European Bank for Reconstruction and Development (EBRD) has presented the Transition report 2021-2022.

In his speech, the Governor of the Central Bank of Kosovo, Fehmi Mehmeti, stressed that the measures taken by the CBK have been very effective in maintaining financial stability for the economy.

Mehmeti said that these two years were quite challenging for the financial system and the economy.

“The prudent measures taken by the CBK have been shown to be very effective in maintaining financial stability for the economy. The banking sector managed to maintain high stability. Currently the loan rate stands at 2.3 percent while the annual rate is 15.7 percent. During 2021 alone, 1.8 billion euros of new loans have been granted. “Financial stability is paramount.”

He has shown that the economy has recovered during 2021 with 10.5 percent, where among the contributors is the banking sector.

“On the other hand, it has not only overcome the crisis but has taken on a key role in economic growth. Therefore the priority is for the banks to maintain stability. The economy has recovered during 2021 with 10.5 percent, where among the contributors is the banking sector. A well-functioning economy must be competitive, inclusive and sustainable. The report pays special attention to digitalization. The CBK has taken important steps in market liberalization and is working on a draft law on the payment system.

The head of the EBRD Office, Neil Teylor, said that last year they helped companies with over 15 million euros, divided into 109 development projects.

“People with digital skills are leaving for other countries. This is the area in which the bank should focus. In the last two years we have decided to help companies, where we have had 109 development projects. We are already seeing demand for this work and this trend will continue. Banks need to move faster and anticipate developments. With 15 million euros of investments, we closed last year,” he said.

Meanwhile, Ana Kresic, economist at the EBRD, said that the transition report consists of two parts, digitalization and a summary of macroeconomic developments.

“After the pandemic we had an increase in terms of economy. A good trend was a strong recovery of 10.5 percent and it exceeded our expectations. The recovery last year was the strongest in Kosovo. Even for this year the prognosis is quite positive. Specifically after the arrival of the diaspora during the summer period. Exports of goods have doubled in 2021. There are some risks that need to be carefully managed, the first risk being inflation. The most affected markets are those that have a share in the basket of goods. Public debt in Kosovo has been lower which emphasizes the importance of performance enhancement. We care about the quality of economic growth. The whole EBRD lags behind EU countries, and Kosovo performs a little worse compared to the region,” she said.

Zsoka Koczan, senior economist at the EBRD, said in her speech that the report focuses on digital sharing. On the one hand during the pandemic she said there have been major improvements in digitalisation.

/Klara Ruci/