Another possible effect would be a flight of borrowers out of the shorter maturities, in particular if they can thus repurchase the bonds at a market discount, implying that not only demand, but also supply of the short maturity bonds will be reduced, and possibly sharply so.
Based on the violations identified by successive examinations, the Executive Board of the CBK, on 6 December 2019, based on the powers guaranteed by Article 36 paragraph 1, sub-paragraphs 1.11 and 1.12, as well as article 67 paragraphs 1 and 2 of the Law on the Central Bank of the Republic of Kosovo, as well as in accordance with Article 105, paragraph 1, sub-paragraph 1.10 of the Law on Banks, Financial  1/2  BIS - Central bankers' speeches  Institutions and Non-Banking Financial Institutions, decided to revoke the registration and initiate liquidation procedures for the microfinance institution "Iute Credit Kosovo" J. S.C. CBK has been and remains confident in the legality and proportionality of the decisions, in relation to this institution and all the decisions issued by its executive bodies.