Leaders of commercial banks in Kosovo have stated that they are not afraid of the crisis that has engulfed large banks in the West, because the money deposited by Kosovo savers have not been invested outside.
“Considering that the Kosovo [banking system] has not been exposed to the foreign financial markets, Raiffeisen Bank has not lost any money and the savings are safe,” stated its spokesperson Asdren Rrahmani.
Officials of the other major bank in Kosovo, ProCredit Bank have also stated for the media that there are no problems with credit return and that it is managing wisely its clients’ money.
Savings of the Kosovo Pensional Trust, however, which have been invested outside Kosovo, have slided downward with the general market. The Trust has come under criticism from the public for failing to respond to the crisis and for investing money outside Kosovo while Kosovar banks lend at very high interest rates.
Kosovar economic analysts say that the Kosovar economy will not be touched directly by the global financial and economic crisis because it less interconnected with the world. However, the level of remittances from the large Kosovar diaspora, which is disproportionately involved in construction, will be affected, says Shpend Ahmeti, of the GAP Institute.
New Kosova Report