Lack of money increases compensation with goods

A more severe situation is noted in the construction sector, which according to the heads of the construction association, most of the time, investors of the facilities in agreement with companies contracted for construction, in exchange for money offer housing.

Brahim Selimaj, chairman of this association, told Radio Free Europe that up to 60 per cent of the amount of financial means is provided with compensation, while the rest with cash.

“in a way, commercial banks in Kosovo are the ones that dictate investors to be in unsolving positions due to interest and deadlines for obtaining a” loan.

“In the absence of adequate conditions for borrowing, investors in the absence of willing money are obliged to be of the most different terms, which are not in favour either of the investor or of the employee, as they are not appropriate”, Selimaj said.

Lack of cash circulation on the market has caused the economy in Kosovo to be heavily indebted among businesses. Such concern is presented by Shacir Palushi, owner of the company “Frutex” by Suhareka, which deals with the production of nonalcohol and energetic beverages.

It shows that due to debt returns delays by companies with which they operate, it is forced to enter into loans in order to implement mandatory payments to international suppliers.

In fact, the cases when they offer compensation are probably the best cases. But there are times when companies are in financial trouble and they are not able to offer that form either, says Palushi Express.

On the other hand, experts on economic issues claim that lack of cash on the market is a consequence of the high level of import, which affects the willing money coming out of Kosovo.

Naim Gashi, experts on economic issues, says the oldest business-making method is the form of mall exchange. This, according to him, indicates the lack of money in circulation to private companies.

Kosovo businesses actually face a lack of financial income potential, and part of it owes their products to burst through exchange of goods with”.

The lack of money in cash in cash extremely makes it difficult to close the business-making cycle, which begins from the idea, respectively, the plan for products or services, to the evacuation. Lack of running tools makes it impossible to continue the business cycle, whether in the production sector, services or other sectors”, Gashi says.

The exchange of goods is part of the economy, which means changing goods for goods or money. The exchange of goods is the necessary economic action, since one country cannot produce all the products needed for people's lives.