Financial Stability Report No1 20 December 2010 - Banka Qendrore ...

Number 1Financial Stability ReportGermany (around (4 %), while imports from Germany (around 13 %) and Greece (around 5%). Remittances to Kosovo comprise around 14 % of GDP. Around 64 % of remittanceinflows come from Europe countries that use EURO, from which Germany has the largestshare.Figure 51. Current account, in percentof GDP60.040.020.00.0-20.0Figure 52. Deposit and loan growth inKosovo, in percent45.040.035.030.025.020.015.010.0-40.02006 2007 2008 2009 2010 projExports (% of GDP)Imports (% of GDP)Remittances (% of GDP)Current Account (% of GDP)5.00.02006 2007 2008 2009 2010 julLoan growthDeposit growthSource: CBKSource: CBKFinancial sector in Kosovo is almost fully euroized (around 96 % of deposits and loans),therefore it is not exposed to the exchange rate risk or the need to guarantee the centralbank liabilities. Hence, besides central bank’s monitoring and risk assessment of thebanking sector, most of the burden of safeguarding the financial stability falls on the fiscalauthorities.11.3.2 AlbaniaAlbania uses a flexible exchange rate regime combined with an inflation targeting policy.Monetary policy in Albania has served well in absorbing the external shocks of financialcrisis and proved to be an asset in the current uncertain environment, while keeping realgrowth at positive levels (Figure 54).Figure 53. Inflation, average consumerprices6.05.04.03.02.01.0-2006 2007 2008 2009 2010 projChange in CPI, AlbaniaChange in CPI, EurozoneChange in CPI, CEFTAFigura 54. Real growth and budgetbalance86420-2-4-6-85.4%-3.3% -3.5%6.2% 6.7%0.4% 2.0%-5.5%-7%2006 2007 2008 2009 2010 projBudget balance (% of GDP)∆ in real GDPSource: WEO April 2010, IMFBurimi:64 |