Tirana, March 13 (AENews) The Banking and Payments Authority of Kosovo, (BPK), ordered today the closing of Credit Bank of Pristina, (Banka Kreditore e Prishtinës).

"After demanding, without success, shareholders to re-capitalize the bank, the BPK could only conclude that the bank was putting the money of its depositors at risk. Even more, enquiry revealed that some board members, shareholders and previous managers strongly contributed to the deterioration of the bank’s financial situation by engaging in highly risky lendinë operations", BPK announced in a press release.

CBK was ordered to stop its activities immediately. This is also the first case of bank bankruptcy in Kosova, since 2000 when UN Mission in Kosova began administration of the disputed territory.

BPK were created in 2000 as a banking and insurance supervising authority taking on the functions of a Central Bank for Kosova. In 2004, total assets for CBK were estimated at EUR 56.6 million, with a loans portfolio of EUR 33 million and deposits at EUR49.4 million.

In 2005, total assets for CBK were estimated at EUR 42.7 million, with a loans portfolio of EUR 28.9 million and customer deposits at EUR35.9 million.

CBK held 7% of total banking assets in Kosova, and 9.3% of net loans. BPK says that 95% of deposits by customers will receive full compensation immediately.

Credit Bank of Pristina
In 000 euro	2004	2005	Change %
Total assets	56,611	42,650	-24.66
From which: Net loans	32,869	28,882	-12.13
Liabilities	56,611	42,650	-24.66
From which: customer deposits	49,349	35,915	-27.22
Shareholders capital	5,332	5,374	0.78

Posted by on Mar 13 2006. Filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry