Regulatory Alerts2015-09-30
Regulation on Emergency Liquidity Assistance
The Board of the Central Bank of the Republic of Kosovo issued this regulation to establish the framework for granting Emergency Liquidity Assistance (ELA) to licensed banks. Licensed institutions must submit Form ELA 1 with proof of solvency, financial statements, and a remedial program to access loans or temporary reserve reductions backed by eligible collateral such as government securities, gold, and Euro-denominated bonds. The regulation sets interest rates at least three percentage points above the monthly average deposit rate, caps reserve reductions at four percent, and mandates strict renewal conditions including suspended dividend payouts and collateral enforcement if assistance is not renewed.
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