Household debt in Kosovo goes up

Household debt in Kosovo goes up

Household debt in Kosovo according to the country’s Central Bank, has registered an increase.

The number of loans issued by the banking sector has increased by 12,7%, while the number of loans issued  by micro-finance institutions has gone up by 26,8%.

Household debt doubled to 6,7% of the total level of debt.

In December 2017, total household debt has increased by 15,6%, amounting to 17% of GDP.

According to the Central Bank of Kosovo, new loans issued to households continued to grow fast and most of these loans were obtained for mortgages.

In total, new loans issued by the banking sector has increased by 15% as opposed to 10,8% a year ago.

Commercial banks operating in Kosovo offer different types of loans, including consumer loans, mortgages, business loans, etc.

Loan agreements oblige borrowers to pay their debt on time, otherwise, they face penalties.

When they default on their loan installments, banks launch procedures to seize the property pledged as security by the borrower. /ibna/