 Background information |
Economic Bank - Sh.a, Prishtina, gained license for operation by BPK on May 28th 2001. This involved an initial capital of 3,000,000 DM. It is the only bank in Kosova maintained its successful banking activity between 1991 and November 1999. Activity in the post-war period was adopted according to new conditions and legislation, and 45 shareholders, including former shareholders and new ones, enabled re-licensing.
The share of private capital within the bank is 89%, while the socially owned part of the enterprise only make up for 11 %. Economic Bank will expand its banking operation in the main centers of Kosova.
By the end of 2002 in addition to its branches in Prishtina, Gjakova, Peja, and Prizren the bank will open new branches in Mitrovica, Gjilan and Ferizaj. The bank performs all banking operations in line with the current law frame, through out all its branches.
| Products and Services Offered to Business by the Bank |
Based on the license gained by BPK, the bank performs the following banking and financial operations.
- Receiving of deposits with or without interest rate in one and/or more currencies.
- Purchasing and selling of the checks and bills issued and guaranteed by the Central Banks of EU.
- Offering payment services in the country and abroad.
- Issuing and managing payment procedures;
- Services for saving of checks, bills and other precious items;
- Approving of loans, including consumer loans and those based on mortgage.
- Borrowing and selling of deposits on bank's and customer account;
- Exchange;
- Borrowing.
- Providing information concerning loans;
- Receiving of various currencies, especially the monetary units according to which the bank's balance is held, including contracts for exchange transactions; and
- Other financial operations as predicted by the BPK regulation on bank licensing.
| Credit Services |
 Type of clients |
Users of the loans and services are: privately and socially owned enterprises, mixed corporations, agriculture cooperatives, individuals and other financial institutions throughout Kosova.
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Current Users of the loans of Economic Bank are:
privately and socially owned enterprises engaged
in manufacturing, trade, and services.
-Terms and conditions
· Interest rate: 1.25 % per month;
· Repayment period: up to 12 months for
short-term loans, and 12-60 months for middle
and long term loans;
· Grace period is based on the ability
of the borrower to pay back a short-term loan
within a period of 1-6 months, then the bank will
approve the borrower's application for grace period:
· Collateral requirements and procedures
consist of real cover to be provided in order
to receive the loan. This coverage could be in:
real estate, machinery, mortgaged deposits, stocks
and accounts receivable. As special attention
concerning collateral assessment is paid to marketable
collateral available that is proposed by the applicant,
adequate assessment of the value of collateral
and legislative possibilities to implement collateral;
· Documents needed to apply for the loans
include: written request made by the applicant,
business plan and other relevant documents. Business
plan should include: sector of activity, background,
fixed assets, equipment, stocks, partners, profit
from the last 12 months, plan as how to manage
the loan, balance, sheet, cash flow statement
for one month before using the loan and additional
information that are needed to complete the documents
for loan application.
· A copy of application form is prepared
by the loan specialist, in which elements that
serve as a base to assess the ability of the applicant
are included.
| Repayment Rate |
With the exception of two cases (where regular payback for a period of six to 12 months has seized), all the loans have been paid back in time. There is a gap in legal framework concerning mortgage regulation and lack of efficiency for enforcement by the court.
| Future Plans |
Over the next 3 years, the bank has plans for the following: to function gaining more clients throughout Kosova and wider presence, improving of services and using modern information technology as much as possible.
| Advantages of Economic Bank |
Interest rate charges for savings is higher that for loans. Faster and qualitative services, lower costs derived from the use of the bank's information system in every branch automatically regardless where the client's account is open, as well as many other advantages.
Economic Bank - Prishtina branch, is the only bank with an ongoing activity with a tradition of over 10 years (1991-2001). |
