4 hours agoloan to New Kosovo “” increases public debt
Periskopi(7 years ago)
(7 years ago)The International Monetary Fund (FMN) has warned that Kosovo's public debt could increase by 40 per cent of Bruto Local Product (BPV). This increase, according to the IMF, could take place after the loan Kosovo and the American company Contour Global is expected to take to build the “New Kosovo plant. Danger from raising [...]
The International Monetary Fund (FMN) has warned that Kosovo's public debt could increase by 40 per cent of Bruto Local Product (BPV). This increase, according to the IMF, could take place after the loan Kosovo and the American company Contour Global is expected to take to build the “New Kosovo plant.
The danger of rapidly raising public debt is highlighted by economic experts. The return of public debt, according to experts, will be challenging for Kosovo.
However, representatives of the Government of Kosovo say they do not think the parameters set by the Law on Public Debt can be exceeded.
Total public debt has reached about one billion euros. As a percentage of BPV, Kosovo's public debt in 2017 has reached 16.6 percent from 14.6 percent in 2016.
Kosovo owes foreign loans mostly to the International Monetary Fund and the World Bank.
According to the Law on Public Debt, in no case the unpaid total debt should exceed 40 percent of Bruto Product.
The International Monetary Fund in its report published days ago, to the Termocentral Power Project “New Kosovo” emphasises that “project holds sufficient fiscal risks and would cover fiscal space, taking into account the write-off of the 30 per cent fiscal regulation investment clause of the local Bruto Production and the maximum debt height of 40 per cent of Bruto Local Production<3x>.
