Annual Report - Raiffeisen Bank Kosovo JSC

Financial Statements
Notes to the Financial Statements for the years
ended 31 December 2006 and 2005
(in thousands of Euro unless otherwise stated)
1. Principal Activities
The current 100% shareholder of Raiffeisen Bank Kosovo J.S.C (“the Bank”) is Raiffeisen International
Bank-Holding AG (RI), formerly Raiffeisen International Beteiligungs AG (RIB). The ultimate parent of the
Bank is Raiffeisen Zentralbank Osterreich AG (RZB). At the date of foundation of the Bank and up to
February 2003 the Bank was called the “American Bank of Kosovo”. In February 2003 the shareholders
of the Bank decided to change the name of the Bank to Raiffeisen Bank Kosovo J.S.C. The change of
the name was approved by the Central Banking Authority of Kosova (the “CBAK”, formerly known as
Banking and Payments Authority of Kosovo - BPK) on 28 April 2003.
The Bank operates under a banking licence issued by the CBAK (formerly BPK) on 8 November 2001.
The Bank’s principal business activities are commercial and retail banking operations within Kosovo.
As at 31 December 2006 the Bank has 8 branches and 24 sub-branches within Kosovo (31 December
2005: 8 branches and 20 sub-branches). The Bank’s registered office is located at the following address:
UCK Street No 51,
Prishtina,
Kosovo – UNMIK.
The number of the Bank’s employees as at 31 December 2006 was 481 (31 December 2005: 386
employees).
2. Operating Environment of the Bank
Under Resolution 1244 (1999) of the United Nations Security Council, Kosovo is administered by the
United Nations Interim Administration Mission in Kosovo (UNMIK) headed by the Special Representative
of the Secretary-General. Since 1999 legislative and executive authority with respect to Kosovo has been
vested in UNMIK. The Constitutional Framework for Provisional Self-Government adopted by UNMIK
Regulation 2001/9 of 15 May 2001 provides for division of powers between UNMIK and Provisional
Institutions of Self-Government, as well as the transfer of powers and responsibilities to the Provisional
Institutions of Self-Government, which is currently underway.
During year 2006, several rounds of negotiations were held between the representatives of Serbia and
Kosovo with the purpose to reach an agreement on the final status of Kosovo. The negotiation process is
undergoing.
The recent economic growth in Kosovo has been mainly driven by large foreign assistance and
remittances from Kosovars living abroad. However, the donors’ transfers to Kosovo are gradually
declining and there is an urgent need for a transformation from an aid-dependent economy. This in turn
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www.raiffeisen-kosovo.com Supervisory Board Management Board Organisational Structure Vision and Mission RZB and RI .