Fehmi Mehmeti: Kosovo Credit Guarantee Fund (KCGF) has facilitated access to financing

Speech by Mr Fehmi Mehmeti, Governor of the Central Bank of the Republic of Kosovo, at the third anniversary of the establishment of the Kosovo Credit Guarantee Fund, Pristina, 16 May 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

The third anniversary of the establishment of the Kosovo Credit Guarantee Fund

Salutations

I am honoured to celebrate today with you the third anniversary of the establishment of the Kosovo Credit Guarantee Fund. It has been a privilege for the Central Bank to contribute, within its legal mandate, to the process of the Fund establishment, in particular in the area of proper legal framework. This fund has achieved tremendous success during these past three years, assisting the economic development and creation of new jobs in Kosovo. Within such a short time, the Fund has managed to guarantee more than 2,560 loans amounting to EUR 100 million, with a guaranteed amount totalling to EUR 47.5 million.

Studies to date show that, among others, access to finance is one of the obstacles to private sector development. Challenges faced by small and medium-sized enterprises for access to finance in one hand, and challenges faced by financial institutions during risk assessment of the financing of these enterprises on the other hand, are already known. So, by providing credit guarantees, the Fund has assisted in overcoming these challenges by facilitating access to finance for small and medium-sized enterprises. Therefore, financial institutions have channelled their liquidity into the type and value of proper funding for the needs of small and medium-sized enterprises.