Germany gives over 7m euros grant to Kosovo

Finance Minister Bedri Hamza has signed two agreements worth over 7m euros with the German Development Bank (KFW), dedicated to increasing the capital of the Kosovar Fund for Credit Guarantee.

The signing of the agreements will be made by Minister Hamza and Rene Eschemann, the director of the KFW Office for Kosovo and Macedonia, and Thomas Reeker, the Senior Project Manager for Southeast Europe. According to them, these funds will primarily enable private sector development and mainly small and medium-sized enterprises.

“, worth 7.45m euros divided into two agreements. 5. 45m euros and 2m euros in support of the Credit Guarantee Fund. That this money is grants, with which the state of Germany, the government of Germany continues to contribute to Kosovo's economic development. Reaching these agreements is also a signal of our common commitment to the very important support of our economy. Especially small- and medium-sized enterprises that are also an encouragement to the new generation of female gender in terms of employment... It is very encouraging news that all commercial banks in Kosovo are registered and co-operate with the credit guarantee fund. It is especially positive that this bank co-operation fund is in support of the private sector that you know our focus is to support and support the private spectrum and to be the biggest contributor to the country's economic growth “, Hamza said.

Through the Credit Guarantee Fund, according to Hamza, more than 23m euros have been seized so far.

While, Rene Eschmerman, director of the KFE office for Kosovo and Macedonia, said this fund aims to succeed and increase capital in the future.

The “since the beginning of its establishment is destined to have great success. But what's special about funding and what they did for future initiatives is that it's all in a permanent and independent institution. It also demonstrates a very good example of donor co-ordination. Because except USAID and the German government and the government of Sweden will join this fund. On one side you raise the basic capital of the fund away, but on the other side it opens a new window of opportunities in particular in the agriculture sector. Because the loan giving is only 4 per cent in this sector. With that we want to further promote the private sector “, he said.

Escherman said the finance minister is the main supporter of this fund.