Governor of the Central Bank of the Republic of Kosovo, Fehmi Mehmeti, hosted a delegation from the International Finance Corporation (IFC), part of the World Bank and led by Damien Shiels.
Governor Mehmeti informed the participants about recent developments in the financial sector, the banking sector in particular, which remains stable.
The IFC representatives, on the other hand, briefed Governor Mehmeti on their project to improve and reform the legal structure and capacity building in the area of restructuring and liquidation of businesses.
The purpose of this project is to assist the Government of the Republic of Kosovo in its efforts to improve its pre-bankruptcy and insolvency regime in the country and stimulate the use of the bankruptcy framework.
This project is expected to lead to improved loan recovery and increased credit return to creditors, enable rehabilitation of potential businesses and mitigate liquidation of ineffective companies and return their assets to productive use.
This project will also result in facilitating access to credit by increasing predictability for lenders and reducing risk premiums that they can impose, thereby making the loan more accessible.
In general, this aims at creating a favourable business environment for foreign and domestic investors and creating of the necessary business for sustainable economic growth.
This will be achieved through the technical assistance targeted to improve the primary and secondary legal framework for the insolvency and bankruptcy, the creation of a legal and regulatory framework for liquidation administrators, through capacity building for key players in the process of bankruptcy and building mechanisms to promote the use of the bankruptcy system.
The IFC also asked CBK to support this project as well as to have a primary role in leading the Working Group and developing a strategy for non-performing loans.
IFC expressed readiness to assist in further advancing the Kosovo Credit Registry.
On the other hand, Governor Mehmeti thanked IFC and the World Bank for the continued support of the financial sector and expressed his readiness for cooperation in the future as well.