The fund, known as Kref, was set up by the bank and the Italian government in 2000 to promote entrepreneurship and to help kick-start private-sector growth in Kosovo shortly after the war ended.
The EBRD has filed suit in the Pristina municipal court and considers this a test case for the local judiciary system. The bank is a firm believer that creditors “rights are crucial to the establishment of a strong investment climate.
The EBRD was among the first international financial institutions to invest in Kosovo’s private sector. Kref invested in several local enterprises at a time when bank financing was either not available or lending was extremely expensive. The bank played – and continues to play – an important role in helping to develop the Kosovar economy. Having recently signed a memorandum with the United Nations Mission in Kosovo, the EBRD intends to increase its business in the province.