Pristina, August 3, 2011
Honourable Z. Nayak,
Honourable guests and media representatives,
The loan we signed today is amounts at 4.3 million Euros (equivalent of 6.85 million dollars) and aims the implementation of the project on strengthening the financial sector and the trade infrastructure of the Central Bank. The project is of special importance given the fact that it covers an important area of institutions and of Kosovo market.
It is our goal in building a Central Bank that is functional, independent and with European standards. This will increase the confidence in the financial sector and in the overall stability of the sector. The financial stability of the country is vital for a long-term and sustainable development.
In these frames, the project aims to increase the stability and the development of the financial sector as well as strengthening of the infrastructure of this sector’s market. This project will finance several of the Central Bank’s areas of activity, such as:
The long-term institutional strengthening; of the financial capacity and sustainability; improving the CBK’s regulation in the area of bank supervisions, insurance companies and non-bank institutions.
The establishment of the Real Time Gross Settlement (RTGS) minimizes the risk during payment balance and increases the confidence on commercial banks.
The establishment of the CBK’s reserve system in enabling a continued functioning in case of disasters, and another important component of this project is also the funding by the basic capital of the Deposit Insurance Fund.
This fund has already begun to function and we expect that through this we can see a further increase of the confidence and sustainability of the banking sector.
In withdrawing these funds, we have pledged, together with the CBK, in fulfilling some of the preconditions which mostly relate to the functioning of the Deposit Insurance Fund, which are obligations that have already been fulfilled.
The project implementer will be the BCK in coordination with the MF and other institutions.
The loan will contain a symbolic interest rate and will be applied at 0.5% for the amount not withdrawn whereas for the amount withdraws a 0.75% of interest rate will be applied.
The loan has a grace period of 10 years and a payment term of also 10 other years, starting with payments as of year 2021 in complete the payment on 2031.
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Meanwhile, the World Bank Country Manager for Kosovo, Ranjit Nayak said that the project supports Kosovo’s government strategy for capital market development and strengthening the stability of the financial sector.
“The objectives of the project are increasing the stability and the development of the financial sector and strengthening the basic infrastructure of the financial sector market” Mr. Nayak said.
Last modified: July 31, 2022