SOURCES OF FINANCE FOR ECONOMIC GROWTH

CREDIT FINANCING FOR THE PRIVATE SECTOR

JUNE 8TH 2010

Robert Wright

Kosovo Loan Market

• The market

• The challenges

• The opportunities

Loan Growth in Kosovo

600

700

800

900

1000

1100

1200

1300

2008Dec

2009Mar

2009Jun

2009Sep

2009Dec

2010Mar

2010Apr

Total Loans Outstanding Business loans

m euros

Source CBK April 2010

Q1 ‘10+30m

Industry Sectors

13%

14%56%

4%

Trade Industry Other Services Agriculture

Business Segments

Segment Turnover Loan size

Micro upto 1m 1,000 - 100,000

Small Enterprises

1m – 5m 100,000 – 1.5m

Corporate 5m+ 300,000 +

The Challenges

• Banking sector is over liquid – 500m+?• Only 23.5% of Kosovo companies use bank finance

– SEE average is 44.7%• Industry profile – trade, construction• Creation of new lending opportunities• Land title and ownership• Quality of financial data and other information• Collection and management of non performing

loans• Foreclosure and legal process

The Opportunities• Relatively low risk industries

- Utilities- Telecoms- Healthcare- I.T.- Consumer – non cyclical

• Agriculture• Municipalities• Government – Treasury Bills• Residential mortgage market

Thank you