Over 500 thousand Kosovars in debt

Over 500 thousand Kosovars in debt

Pristina, 25 May 2015/Independent Balkan News Agency

By Elton Tota

Around 2 billion Euros is the value of loans borrowed by consumers and businesses at commercial banks in Kosovo.

Based on the recent data published by the Central Bank of Kosovo, there are around 500 thousand Kosovars who have borrowed in order to secure a normal living for their families.

What’s worse is that a part of the citizens are unable to pay their debts due to the high interest rates, unstable market and the lack of stable jobs.

Economy expert, Ibrahim Rexhepi says that the lack of awareness by the citizens about the reason of taking out a loan and the lack of an efficient management of the money, often puts families in difficulty when it comes to paying off the debt.

Economy journalist, Shkelzen Dakaj told IBNA that if the loans taken from banks do not generate incomes, then there’s a larger risk for them not to be paid back.

“If the loan taken out by an enterprise is not used for investments that generate incomes, then it’s difficult for it to be paid back. Households too must not borrow to buy luxury goods, but to start a family business where they can be employed”.

Meanwhile, executive chairman of the Institute for Advanced Studies, Agron Demi says that the high value of loans in the banking sector shows that Kosovo’s market lacks cash, that salaries are low and people in Kosovo are unable to save.

Interest rates on individual and business loans amounts to 8,9%. Banks have lower interest rates in the recent years, but according to experts, they are still high. /ibna/