The Central Bank of the Republic of Kosovo has approved an Advisory Letter on Syndicated Loans that sets supervisory expectations and establishes a regulatory framework for syndicated lending, intended to broaden banks’ capacity to finance domestic borrowers for large, strategic, long-term projects, including clean energy and other capital-intensive investments. The framework is designed to facilitate syndicated loan arrangements and create additional credit capacity for the economy by diversifying credit risk, reducing concentration risk, and supporting financial stability. Banks are expected to develop internal policies and procedures for syndicated loans that take account of the Competition Law to ensure fair competition in line with international best practices. The guidance was developed using advanced international practices and legislation, aligned with the central bank’s strategic plan, and supported by USAID through consultations with the financial sector and capacity-building workshops.
Central Bank of the Republic of Kosovo 2025-01-23
Central Bank of the Republic of Kosovo approves supervisory guidance for syndicated loans to expand funding for large strategic projects
The Central Bank of the Republic of Kosovo approved an Advisory Letter on Syndicated Loans, creating a framework to enhance banks' capacity for financing large projects. It aims to diversify credit risk, reduce concentration risk, and support financial stability, with banks aligning policies with the Competition Law. Developed with international best practices and USAID support, it seeks to ensure fair competition and bolster the economy.