Faced with a deep financial crisis in his once-large business, and after a commercial bank rejected his loan request, a citizen from the Kosovo Plain sought salvation from moneylenders.
Initially, he received only 2.000 euros – a sum that seemed small to keep the business afloat – but then another 150 euros. Each new loan he took out was to pay off the old one, and the debt only grew.
“For almost five years, I have paid over 500 thousand euros in interest to 20 different people,” says Izet [name changed by the editors], 60. In addition to the amount paid, he lost his business, the building where he operated, and other assets, worth 1 million euros.
He mortgaged his house – the only real estate he had left – to a bank to obtain a loan with which he paid the interest.
In his small town, he says, it is very easy to borrow money with interest, because the usurers are numerous and known by everyone. But, according to him, interest is “a living death.” He has found the strength to overcome the situation only in his children.
“Eat bread and salt, and don’t borrow money with interest,” says Izeti, who faced illegal debts for almost a decade.
Illegal borrowing, a serious problem in Kosovo
Izet’s case is not isolated. Indictments against people suspected of usury are frequently reported in Kosovo, with millions of euros in damages being cited.
In October of this year alone, authorities filed indictments in two separate cases, in which eight people are suspected of causing damage of up to 8 million euros. The prosecution requested the confiscation and return of 21 apartments and business premises that the victims had given to loan sharks because they could not repay their debts.
Lawyer Xhevahire Miftari Kloppner says that many citizens fall prey to usury due to the lack of quick access to formal credit – especially those with low incomes or no assets for a mortgage. According to her, in some cases citizens think they are taking out a regular loan, but then face interest rates that go up to 20 percent per month.
Often, the victims are businessmen seeking to expand their businesses, but unable to repay the debt, they are forced to close them and lose their properties. As the debt grows, the moneylenders often exert pressure, threats, and forcible seizure of property. Some people have even been forced to leave Kosovo.
Investigation challenges
Kosovo Police data shows that 13 cases of usury were opened during the period January-September 2025. Last year, this number was 23, while in 2023, authorities had opened 24 cases.
During 2021-2023, the Police dismantled 106 criminal groups, nine of which were involved in usury. Out of 740 suspects of organized crime, 78 were involved in this activity – the majority in the Pristina and Peja regions.
According to Miftari Kloppner, the number of real cases is much higher, because many victims are afraid to report them. However, monitoring by the Kosovo Law Institute (KLI) shows that during 2025 there was an increase in cases filed by citizens, thanks to closer cooperation between prosecutors and the use of covert investigative measures.
Flamur Kabashi, a researcher at IKL, says that a major challenge remains the fact that many injured parties do not stick to the statements given to the prosecution, as they face pressure. According to him, courts often do not confront statements, which weakens the process.
KLI assesses that the Basic Prosecution Office in Prizren has made the greatest progress in investigating usury cases, and that this model should be followed by all prosecution offices in the country.
According to the Kosovo Criminal Code, usurers are punished with a fine and imprisonment from 6 months to 12 years, depending on the degree of damage. However, according to data previously provided by former Minister of Justice Albulena Haxhiu, in August of this year, out of 1.752 people imprisoned, only four were convicted of usury and eight were held in pre-trial detention.
“These are not just isolated acts, they are part of a criminal chain that hits the most vulnerable and contributes to a deep sense of injustice in society,” Haxhiu declared.
The Kosovo Correctional Service did not respond to REL’s inquiry about the number of prisoners currently incarcerated for the criminal offense of “usury”.
A wound that damages the economy
Experts say that penalties for usury should be toughened to create a real deterrent against illegal lenders.
Shkumbin Misini, professor of economics at AAB College, points out that businesses that face a lack of capital or difficulty obtaining formal loans often fall prey to usury. The high interest rates – 20 percent monthly and up to 200 percent annually – are, according to him, devastating.
“No business can afford these rates. And, to repay the usury debt, businesses work, but at a loss, and go bankrupt, while the usurers take the property, machinery, and shares of the company,” he says.
According to him, the consequences are long-term for the economy: they reduce formal investments, increase the circulation of money outside the banking system, reduce taxes and damage the country’s financial stability.
Miftari Kloppner emphasizes that changes in legislation are needed to effectively address the usury phenomenon. She suggests that the law clearly define the responsibilities of both parties involved, with the aim of strengthening enforcement and reducing lending practices outside the legal framework./Radio Free Europe/