Kosovo's private sector loan stock up 4.1% y/y to EUR 1.75bn at end-April 2013

By bne IntelliNews June 3, 2013

The stock of loans extended to Kosovo's private sector rose 4.1% y/y to EUR 1.75bn at end-April 2013, central bank data showed. This is an all-time low for the private sector credit growth, which has been speeding up at a double-digit pace throughout 05'-08' but as the recession hit it began steadily decelerating. 

In monthly terms, the non-government loan stock increased for a third consecutive month, up by 1.2% in April. However, the monthly improvement is not enough to reverse the underlying long-term trend of slowing credit supply growth. In that context, new loans (without overdrafts and credit lines) extended in Jan-Apr amounted to EUR 234.7mn, which was virtually the same as a year earlier.

Outstanding credit extended to corporations increased by 3.9% y/y to EUR 1.2bn at-end April. The central bank breakdown showed that loans approved to Kosovo's wholesale and retail sector increased 4.6% y/y to EUR 650mn, while the volume of industry loans declined 0.2% y/y to EUR 296mn. The value of loans to construction companies deteriorated significantly, sinking by 21% y/y to EUR 102mn.

Furthermore, household loans climbed 4.5% y/y to EUR 551mn at-end April.

Related Articles

EU scales down rule of law mission in Kosovo

The European Union is cutting back its rule of law mission in Kosovo, EULEX, by bringing the judicial executive part of the mission’s mandate to an end, European Council said. Pristina-based ... more

IMF warns Kosovo of possible fiscal risks despite solid economic performance

The International Monetary Fund (IMF) said on June 6 that Kosovo’s economic performance remains solid, but fiscal risks have increased. The IMF recently projected that the Kosovan economy will ... more

Kosovo moves to revive major mining complex Trepca

The government of Kosovo approved the statute for Trepca at its May 29 meeting, almost two years after the major mining complex was put under government control in a bid to save it from bankruptcy, ... more

Dismiss