Kosovo's overall debt continues to rise

This debt increase, according to the Central Bank report, is attributed mainly to increased domestic debt, which has reached 479m euros, while public external debt has reached 373.8m euros.

Expressed by percentage, public debt has reached 14.5 percent of Bruto Product. This debt value, by experts on economic issues, is considered not high and that according to them, there is room for obtaining loans for development purposes.

The overall debt is the total of state and municipal debt. This debt is taken on behalf of central government institutions, which the Republic of Kosovo is obliged to pay.

The chairman of the Kosovo Economic Ode, Safet Gerjaliu for Radio Free Europe, says the amount of Kosovo public debt cannot be considered alarming because it is within the legal framework.

I say this based on the fact that debt trends should be measured and compared to the level of economic growth. And if the World Bank and the Monetary Fund confirm economic growth for 2016 near 4 percent and we have this level of debt, then we need no trouble. But instead it should motivate us to have projects that have better reason for and financial discipline”, Gerjaliu says.

Even the other expert on economic issues, Naim Gashi, says that compared to the countries in the region, Kosovo has the lowest percentage of public debt, but that according to him, this debt should not be increased uncontrolledly.

Kosovo has judicial space to continue borrowing, but even though legislation in effect allows us to do so even the parameters of international financial institutions allow. However, Kosovo must be very cautious in entering new debts and the coming generations to pay off our debts, in which there is no economic benefits and direct financial benefits, for the economy, for citizens and for the state ark”, Gashi said.

Gashi for Radio Free Europe also said there are many sectors and many profitable projects in Kosovo, for which competent authorities can borrow and easily repay the loan.

Meanwhile, Safet Grrejaliu stresses that access to credit to invest in infrastructure should be overlooked, but it is time, he says, to meet other objectives, namely strengthening the private sector.

In this direction, we really need to have more institutions for research and development, which unfortunately in Kosovo can find little or nothing to get rid of, Gerjaliu points out.

Otherwise, according to the Law on Public Debt, in no case the unpaid total debt should exceed 40 percent of Bruto Product (BPV).

If the overall debt exceeds this percentage of the local Bruto Product, then the government should present the Parliament the strategy to return the total debt below the 40 percent threshold.