Kosovo has over 1 billion euros in debt

According to the latest data, public debt in Kosovo has reached 1 billion and 208m euros. The interest rate is 2,14 percent of the average time for debt return is 5.2 years, writes the Voice newspaper today.

1 billion of 208m euros is the current public debt in Kosovo. At a table organised by BIRN concerning the public debt in Kosovo officials from the Ministry of Finance stated that the same has been starting since 2009 to rise today in these figures. Kosovo, according to funders, has high marks on drafting public debt legislation, however, if this debt continues to rise it is obvious that the country will face challenges.

Even the Central Bank of Kosovo has estimated that this debt is at good level and unisfrusting.

Public debt in Kosovo started from 2009

Treasury Director at the Ministry of Finance Ahmet Ismaili has at this table talked about the public debt arrangement, challenges, as well as the state of public debt in Kosovo. According to him, 2009 marks the starting point of Kosovo's entry into public debt. Kosovo has begun to owe public debt after 2009, so after independence, when the first loan from the former Yugoslavia was made and which was imposed by the World Bank and developed further. Public debt in Kosovo is managed on the basis of the Public Finance Management Law, specifically with the Public Debt Law, as well as with a host of other sublegal acts”, he has stated.

However, according to Ismaili, there are assessments from both local and international institutions that Kosovo has well regulated legislation on public debt. “It is the assessment of local and international institutions, including the National Audition Office, that the public debt in Kosovo is well regulated in terms of legislation, there are healthy and good management practices, and it's at an extremely low level, so it's about 17.5% compared to gross local product, but it has certainly highlighted some challenges, which are related to capacities and other 48x1>, he said further.

Ismaili has also talked about two types of public debt in which Kosovo is located. Kosovo's “Public Information consists of external and internal debt. Internal debt is the Treasury's valuable letters, ranging from 6 months to 10 years of maturity, have been a success story. Today, valuable letters include about 67% of the debt. This report has changed in recent years and currently dominates internal and overall debt in Kosovo. International debt has begun since 2009 and represents 33 percent of the general portfolio”, he has said, among other things.

By November, public debt in Kosovo has reached 1 billion and 208m euros. “According to the latest data, public debt has reached 1 billion and 208m euros. The interest rate is 2.14 percent, the average time for debt returns is 5.2 years. 11% of debt is joeuro currency. The ratified loans cost infrastructure, energy, water, environment, agriculture, education, and so on. Cut renewable energy and infrastructure”, he stated.

Treasury Director at the Ministry of Finance has also talked about the challenges facing public debt in Kosovo.

The main challenge, the level of use of these tools has been low, often unacceptable. We've started reporting to Government on why these capital investments are not being executed, even though the means are applied so that budgetary organisations can be faced in government and thus show these causes. The challenges concern professional frameworks, procurement procedures, expropriation and the budgetary process. In the last two to three years, there is improvement. From the latest data, 480m euros is the value of approved loans, but have not yet been used for various reasons. Two agreements are being expected in the Assembly, one for the cadastre and the other for strengthening the financial sector or the funding for strengthening loans”, he said further.

Havol: Public debt is at good level

BQK Deputy Governor Sokol Havolli has said that positive steps and not public debt is necessary at all times. “Borgi gets negative cootation in any discussion, but we have to take the positive sides related to capital investment financing. Public debt should be seen as a positive element for financing long-term investments. Interest rates are relatively low. We can find that the next 10 years will be valid for financing capital investments through public debt. In the BQC's view of public debt is at a good level”, he said.

While Drerkin Morina, from the National Auditor's Office, said the Kosovo government goes into debt without being ready to execute the projects. “390 million ratified loans, which have not been withdrawn because budget organisations have not been ready. Over the year, 19m euros of interest has been paid. Debt as a total, according to the third quarter, is 17.4%. Despite our recommendations to break down the practice of entering the engagement before we are ready, this amount is seen to have increased by 100 million, and this has amounted to 490m euros. There is no improvement, the Government goes into debt without being ready for the execution of” projects, Morina said.

Murati: Public Debt Unstable

The MP, elected from the ranks of Vetevendosje Movement, Iron Murati, who is connoisseur of economic issues, has said in the past five years the external debt has increased 80m euros, while domestic debt has increased 500m euros. According to Murati, this debt is not sustainable.

“If we look, we've constantly had increased current spending, which is hard to reduce and there's increased capital investments. It is said that public debt is about 1.2 billion euros, the average is 120m euros annually, which has had to be financed by public debt. In the last five years in external debt, we have 80m euros in net growth, while in domestic debt of 500m euros, this debt is not sustainable”.