Kosovo's public debt totals 1.3 billion euros in last quarter

In the last quarter of this year alone, the country's public debt has reached 1.3 billion euros, which compared to the same period in 2019 is for 1.12 percent higher.

Meanwhile, as a percentage of all Bruto Local Production (BPV), public debt this time period has reached 19.9 per cent from only 17.4 per cent in 2019, the Economic Bulletin submits.

This increase in public debt, according to the latest report by the CEC, titled “Framework Development Review No. 32, Month III/2020” is attributed to an increase in domestic debt of 18.7 per cent (which has reached 934.5m euros), while the public external debt has scored 0.3 per cent and was 407.3m euros.

On the other hand, according to the CEC, the share of the public external debt in total has been reduced to 30.4 per cent, down from 34.2 per cent to TM3 2019.

Otherwise, the pre-lawed public debt threshold in Kosovo is 40 per cent of BPV, and therefore the level of public debt of 19.9 per cent keeps Kosovo in the country's position with the lowest degree of public debt compared to countries in the region, the Central Bank of Kosovo estimates.

“Anyway, this low level of public debt could rise rapidly in the future as a result of negative effects of COVID-19 in Kosovo's economy and government plans to finance the budget deficit through public debt”, the ECC report is further said.