Is there a general financial intervention plan already in effect?


While the government has not yet presented a general and comprehensive economic plan to mitigate the economic effects of the pandemic crisis, there are certain measures of general effect already imposed, such as the temporary prohibition of sale of goods and services to consumers, temporary prohibition of international and interurban transport of goods and passengers, reduction of all public services to the essential minimum, etc.


What’s the regulatory reaction in the Banking sector to mitigate the impact?


On 16 March 2020, the Board of the Central Bank (CBK) along with Kosovo Banking Association (KBA) have jointly decided to suspend loan instalment payments for both, businesses and individuals for a period starting from 16 March 2020 until 30 April 2020. Depending on the evolvement of the situation, such a suspension may be reconsidered for a longer period. However, the decision gave an extent of discretion to the Banks to decide on the suspensions of loan instalment payments on a case-by-case basis, with the intention to help their clients to overcome the current situation.


Is the Decision automatically applied on any Bank loan?


No the suspension does not apply automatically. The Borrowers who have encountered financial difficulties, as a result of the decrease in personal or business incomes, should contact their banks with a request to suspend loan instalment payments. In cases where banks approve these requests, loan-related penalty interest shall not apply during this period. During this period, no credit rating deterioration measures shall be applied to borrowers. In the event of suspension of loan instalment payments, the CBK has taken all necessary legal measures to prevent the loans from being rated as non-performing loans in the Credit Registry.


When is the suspended instalment(s) going to be payed?


Unpaid instalments will be subject to repayment after this situation ends, which means that the loan maturity date will also be extended by one month, assuming the period of suspension is not extended, or by as long as the suspension period extends.


Are there any measures taken under circumstances in the insurance sector?


Pursuing Government’s recommendations, all insurance companies are operating at their minimum capacities, whereas no services are rendered in three municipalities already placed under quarantine, Klina, Viti and Malisheva. The Insurance Association of Kosovo encourages citizens to make use of online services insurance companies are offering. 


These are all the sectorial measures competent authorities in the Republic of Kosovo have already adopted in response to the extraordinary situation caused by the pandemic outbreak of COVID-19. New measures are expected as the situation evolves on daily basis.