The Governor of the Central Bank of the Republic of Kosovo,Mr. Fehmi Mehmeti, and the Deputy Governor for Financial Supervision, Mr. Sokol Havolli, held a virtual meeting with the leaders of the Kosovo Banking Association and the Directors of Banks.
In this virtual meeting was discussed the current situation of the banking sector, which so far has successfully faced the operational challenges of the pandemic, continuing to lend to the economy and providing all other banking services. The banking system has continued to be characterized by high levels of capital and liquidity as well as very good quality of assets, as a result of adequate financial regulation and high supervisory standards.
At this meeting it was announced that after closely monitoring the developments related to the COVID-19 pandemic and in particular, the impact of the second wave of COVID-19 and the relevant Government restrictions to prevent the spread of the pandemic, on Tuesday the Executive Board of The CBK has approved the new guide for loan restructuring due to COVID-19.
The purpose of this guide is to alleviate the credit burden of borrowers who have encountered financial difficulties as a result of the pandemic by restructuring loans without implicating any deterioration in the Kosovo credit register.
Governor Mehmeti said that the role of banks to ensure the continuous flow of lending to customers remains of great importance and with the approval of this instruction, the CBK recognizes the circumstances created in the country by the second wave of COVID-19.
One of the measures taken by the Central Bank of Kosovo in order to maintain financial stability is the temporary ban on the distribution of dividends, so the issue was raised by bank representatives seeking to review this ban. Deputy Governor Havolli stressed that the CBK will review this measure and that the issue of dividend distribution will be addressed in full compliance with the practices and decisions of the European Central Bank.
Also, Governor Mehmeti said that the CBK remains committed to provide all necessary facilities in the service of overcoming as easily as possible the challenges that our economy is facing, but always bearing in mind that ensuring financial stability remains our main objective.
He also encouraged all representatives of the banking sector to further strengthen the partnership with customers, providing them with the most appropriate conditions for overcoming the challenges caused by COVID-19 in our economy, but these facilities are required to be based on sound risk analysis so as not to jeopardize the stability of banks.
Bank representatives thanked the CBK for its constructive cooperation and proactive approach to the measures taken, and pledged to increase support for the country's economy.