Doing Business in Kosovo - US Department of State

Chapter 7: Trade and Project Financing
How Do I Get Paid (Methods of Payment)
How Does the Banking System Operate
Foreign-Exchange Controls
U.S. Banks and Local Correspondent Banks
Project Financing
Web Resources
How Do I Get Paid (Methods of Payment) Return to top
About 75% of Kosovo importers regularly receive goods under short-term supplier credits.
Longer term financing may be sought for larger purchases but could be difficult to obtain. The
following instruments are used in Kosovo for payments abroad: remittances, documentary
collections, checks, and letters of credit. There are currently no credit rating agencies operating
in Kosovo.
How Does the Banking System Operate Return to top
Kosovo’s financial sector has developed rapidly during the last six years, particularly in banking.
The Central Bank of Kosovo (CBK), is a distinct public entity with the authority to license,
supervise and regulate financial institutions in Kosovo. CBK has adopted banking rules and
regulations that are in line with the Basel Accords and EU directives.
Kosovo uses the Euro as its national currency, although the country is not a member of the
European Central Bank and has no independent monetary policy of its own.
Eight private commercial banks dominate Kosovo’s financial sector, many of them foreignowned,
comprising approximately 90% of total banking system assets while domestic banks
account for the remaining 10%. Commercial banks account for 75% of the financial sector and
insurance companies, pension funds and other financial intermediaries make up the rest. In
June of 2011, financial sector assets amounted to EUR 3.3 billion, a 15% increase compared to
the previous year.
Neither the banking sector nor local commercial enterprises are ready to finance large
investment projects in the private sector. In the past three years, there has been little private
investment in Kosovo, outside of housing reconstruction. About 80% of bank credits are shortterm
credits, which do not support long-term investments. Most deposits are demand deposits.
Foreign-Exchange Controls Return to top
Kosovo has adopted the Euro as its national currency. The CBK has no monetary policy tools to
influence the Euro. Other than reporting the removal or importation of €10,000 into the country
to Kosovo Customs, there are no currency or payment restrictions related to use of the Euro in
Kosovo.