Annual Report 2010 03 August 2011 - Banka Qendrore e ...

Annual Report 2010
CBK
(23.0 percent of total FDI). Another important sector with regard to the amount of received
FDI consists of the financial sector, which absorbed 22.1 percent of total FDI in Kosovo. The
FDI in the financial sector are mainly composed of reinvested earnings of financial
institutions that operate in Kosovo. The real estate sector (15 percent of total FDI) and the
construction sector (15 percent of total FDI) also represented important sectors for the
attraction of FDI in Kosovo during 2010.
The origin of foreign investors in Kosovo is mainly from the EU countries. Germany
continues to be the country where most of the FDI come from, followed by Slovenia which
represents the second country in terms of the volume of investments in Kosovo. An
important share of FDI in Kosovo also comes from Austria and China (Figure 44).
3.4.2.2 Portfolio Investments, Other Investments and Reserve Assets
Portfolio investments abroad recoded a considerable growth in 2010, reaching at euro 231.0
million (euro 56.5 million in 2009). Out of euro 231.0 million, 66.9 percent consist of the
investments of pension funds, while the remaining 33.1 percent are investments in
international financial markets by commercial banks operating in Kosovo.
These investments are mostly oriented in money market instruments (for example, in
securities), while a smaller part of them is invested in other instruments of capital markets.
The recovery of global financial markets can be considered as the most important factor
that resulted in the increase of portfolio investments during 2010.
The balance of “other investments” in 2010 was positive, amounting at euro 390.4 million
compared to euro 116.2 million in 2009. Within the other investments category, assets
represented 62.1 percent of total investments, while liabilities composed 37.9 percent. A
considerable growth within the other investments category was recorded in the side of
assets as a result of the higher level of investments abroad, mostly in money market
instruments invested by commercial banks, monetary institutions and other sectors.
Liabilities, on the other hand, continue to be dominated by the trade credit, which
represents 43.1 percent of total liabilities within the other investments category. In the end
of 2010, the amount of trade credit was euro 63.7 million, which compared to the previous
year represents a decline of 39.9 percent. The decline of the trade credit may indicate a
better solvency of firms in Kosovo during 2010, compared to year 2009. Reserve assets of
Kosovo in the end of 2010 recorded an annual growth of euro 46.9 million.
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