sources of finance for economic growth credit financing for the private sector june 8 th 2010 robert...
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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
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