Loan sharking is destroying businesses in Kosovo

Loan sharking is destroying businesses in Kosovo

Pristina, 21 September 2015/Independent Balkan News Agency

By Elton Tota

The unfavorable business conditions, high interest rates on loans and long procedures of borrowing in commercial banks that operate in Kosovo, have led to many businesses to address to loan sharking, representatives of the business community confirm.

Loan sharking is a way of loaning money in an unlawful way and by applying a high interest rate.

Head of the Kosovo Chamber of Commerce, Safet Gerxhaliu says that this illicit activity is growing and is becoming worrying for society in general. Many entrepreneurs, unable to get a loan approved from banks, decide to borrow money by paying high interest rates.

“It seems that this phenomenon has been spread a lot. More should be done to prevent this. The state must intervene, because the consequences of such phenomenon will be great”, Gerxhaliu says.

Musa Limani, professor at the Faculty of Economics, says that loan sharking, besides destroying businesses, also lead to fatal conflicts.

“Loan sharking is unlawful, but these financial agreements may be entered between people and this is damaging for businesses, because these loans have a very high interest rate”, Limani says.

Daut Hoxha, spokesman of Kosovo Police, says that police are working in order to stop this phenomenon which is damaging businesses.

“Kosovo Police have been working and conducting operations throughout the country. Many suspects have been arrested and such cases have been handled under the applicable law”, he says. /ibna/