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Serbian bank heading towards enclaves in Kosovo

Prishtinë, Aug 17, 2006 - Out of the six commercial banks that currently operate in Kosovo - another one might soon enter the Kosovar market.

Komercijalna Banka AD, with headquarters in Belgrade, has already applied for permit at BPK and indications are that it may very soon obtain the license to practice its banking business throughout Kosovo, reported Kosovar daily Express.

“The issue of whether the bank will enter the Kosovo market is not important. But, it may have a detrimental impact on the banking sector in Kosovo as a result of the bank’s low interest rates. The bank’s projects foresee numerous financial assistance towards Serbian enclaves, which may have political consequences,” stated a source within BPK.

“Komercijalna Banka AD has presented a very delicate project and regardless of the oppositions from the BPK local staff, it will obtain the license due to the support of BPK international staff. According to the documents presented, Komercijalna Banka AD has a fund of over €180 million for the economic development of Serbian enclaves in Kosovo,” stated a BPK official, reported Express.

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