Improvements in Enforcement of Civil Judgements Make an Impact

Wednesday, July 31, 2019
Improving enforcement of civil judgments in Kosovo
Zana Berisha, USAID

The establishment of the private enforcement profession five years ago has dramatically improved enforcement of civil judgments in Kosovo.  To mark the fifth anniversary of Kosovo’s private enforcement system, over 120 key figures from government institutions, courts, and the region gathered on July 15 to commemorate this milestone.  Apart from the discussion of achievements and ongoing challenges, the conference also featured the signing of a Memorandum of Cooperation among the Kosovo Chamber of Enforcement and the enforcement chambers of Bulgaria and Montenegro, establishing regional coordination.

According to World Bank statistics, the average interest rates in Kosovo have dropped from 10.62 percent in 2014 to 6.65 percent in 2018 as a result of the work of the Private Enforcement Agents.   Lending has also become more attractive and competitive for banks. Kosovo has seen its interest rate spread (the difference between interest paid on deposits and interest charged on borrowing) drop from 9.5 percent in 2014 to 5.34 percent in 2018.  Finally, as borrowers know that non-payment will result in assets being seized and additional costs being imposed, voluntary repayments will likely increase.  While data on voluntary repayment rates are not available, Kosovo has seen its non-performing loan ratio drop from a high of 8.31percent in 2014 to 3.08 percent in 2017.

USAID is supporting the enforcement of civil decisions through its Commercial Justice activity.  


Last updated: February 06, 2020

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