Financial policies undertaken by the CBK to defer and reschedule loans mitigate the negative impact on borrowers and banks


The International Monetary Fund has assessed the actions of the Central Bank of the Republic of Kosovo regarding the deferral of payments for loan.

 In the concluding statement of the Assessment Mission for Article IV, the IMF finds that CBK's decision to postpone the return of credit payments and the decision for rescheduling of loans up to one year have softened the impact of borrowers and banks.

"The decision to postpone loan payments in March resulted in a three-month moratorium on loan payments, which was used by more than 50 percent of total bank loans. As this window closed, the CBK in June allowed applications for up to 1-year loan extensions and restructuring on individual basis At the closing of this window in September, about 15 percent of the banks’ loan book have been reprogrammed”,  it is said in this statement . The IMF also estimates that the lifting of regulatory measures should be gradual and the CBK should adjust its plans in line with economic growth expectations for 2021. 

These estimates come from a mission of the International Monetary Fund (IMF), led by Mr. Gabriel Di Bella, who conducted a virtual visit from 23 September to 7 October, following the Concluding Statement of the 2020 Article IV Mission and in the context of 2020 Article IV consultations.