About 400m euros in pardoned debts

For the forgiveness of debts, the Government of Kosovo had made a decision in February 2015, and in September of that same year, it had also approved the Law on Free Public Debt.

The deadline for repayment of debts has been closed in September of this year. Finance Ministry spokesman Muharrem Sahini told Radio Free Europe that the entire debt forgiveness process is well-out and now complete final reports.

“Based on data reported by state institutions and public enterprises during the debt forgiveness process, approximately 400m euros have been pardoned. We are awaiting recent reports from state institutions and public enterprises. After their accession, a summary report with detailed data for all institutions based on their” reports will be drafted, Sahin says.

The biggest debts, which have been forgiven, he adds, have been to the Kosovo Energy Corporation, the Tax Administration and public enterprises.

“From the forgiveness of debts most have benefited subject/businesss which have had obligations to the Kosovo Tax Administration, citizens who have had obligations to the Kosovo Energy Corporation, then citizens who have had obligations to the municipalities for duty in property tax and (citizens) who have had obligations to public enterprises, mainly to those which operate in Kosovo's largest towns<1>, says Sahini.

The pardoning of public debts for legal and physical persons in Kosovo, accumulated by December 31st 2008, according to business representatives, has run into difficulties due to some provisions the law regulates the issue.

Under the Law to Forgive Debt, for the period until December 31st 2008, all persons who have unremarked obligations to state institutions and public enterprises benefit, provided they fulfill the same accords to the period of 1 January 2009 through December 31st 2014.

Croatian Jevat Kastrati from Pristina says he has not applied for forgiveness of debts, precisely because of provisions the law has made.

I haven't applied since I haven't been able to pay the amount we've been charged with, he says.

Until, Nasser, also citizen of Pristina who has had an accumulated debt of 400 euros, says this law has helped.

“Yes, such a decision by the past government for forgiveness of debts has been shot. We have fulfilled our obligations and are now more regular in performing obligations for the services we receive”, he says.

By the time the Law for Debt Forgiveness was adopted, this initiative by civil society was considered unfair to disciplined consumers who have paid all dues during that period.

They had stressed that by this measure, citizens and businesses that have not respected payments and debts have been rewarded, avoiding taxes and not paying for public services, while all conscientious citizens who have paid off their own debts in time.