Governor Ismaili participates in the international conference marking the 10th anniversary of the Kosovo Credit Guarantee Fund: Institutional cooperation is essential for building a more sustainable and accessible financial ecosystem in the country

The Governor of the Central Bank of the Republic of Kosovo (CBK), Mr. Ahmet Ismaili, participated in the international conference organized on the occasion of the 10th anniversary of the establishment of the Kosovo Credit Guarantee Fund (KCGF), where he also delivered the opening remarks and served as a panelist on the topic “Remaining Market Gaps and the Role of Development Finance in Escaping the Middle-Income Trap.”

In his speech, Governor Ismaili emphasized that this anniversary represents an important institutional achievement and a concrete testament to the shared commitment to sustainable and inclusive economic development. He praised the key role of the KCGF in improving access to finance for enterprises, especially small and medium-sized businesses, by helping overcome financial barriers and fostering private sector development.

Governor Ismaili underlined that the close cooperation between the CBK and the KCGF, as well as other domestic and international institutions, has been essential in building a more sustainable and accessible financial ecosystem in the country.

Speaking about developments in the financial sector, Governor Ismaili highlighted that over the past decade Kosovo’s financial system has recorded steady growth, positioning itself among the strongest sectors in the region. He noted that the banking sector continues to dominate the structure of the financial system, accounting for around two-thirds of total assets, while experiencing significant growth in lending and deposits, approximately tripling over the ten-year period.

Governor Ismaili also recalled the role of the CBK in establishing and advancing the KCGF, emphasizing that through the regulatory and supervisory framework it has been possible to treat guaranteed loans with a 0% risk weight for capital requirements, thereby encouraging private sector lending. In this context, he assessed the concrete impact of the KCGF on the country’s economic development, highlighting its contribution to increased lending, which has supported businesses and job creation.

Furthermore, Governor Ismaili stressed that the quality of bank assets remains high, with the non-performing loan ratio at around 2%, demonstrating prudent risk management and effective supervision. This, together with high borrower discipline, careful risk management practices, and supportive policies—such as the weighting of loans guaranteed by the KCGF has ensured that credit growth has been both high-quality and consistently in double digits over the years.

He then presented the CBK’s ongoing reforms aimed at further strengthening the financial sector, including the advancement of the regulatory and macroprudential framework, alignment with European Union standards, and the promotion of financial innovation and digitalization.

Later, speaking on a panel moderated by Professor Emeritus Iraj Hashi, together with Ms. Martha Martinez Licetti from the World Bank, Ms. Hille Henebry from KfW, and Professor Besnik Krasniqi, Governor Ismaili emphasized the importance of financial stability alongside development finance in addressing remaining market gaps through development financing instruments. He noted that mechanisms such as credit guarantees play a key role in escaping the “middle-income trap” and supporting the structural transformation of the economy.

He further elaborated on alternative financing instruments, including the productive mobilization of capital, as well as initiatives to establish a capital market, as efforts that would complement access to finance at different stages while maintaining a cautious regulatory approach. He also underlined the importance of financial stability, considering it the foundation upon which sound regulatory policies should be built, in line with international practices.

In conclusion, Governor Ismaili congratulated the KCGF on its 10th anniversary, expressing confidence that through continued inter-institutional cooperation, even greater results will be achieved in support of the country’s economic development and European integration.