Government urged to accommodate at least 300m euros for private sector

Looking at the economic situation created after the outbreak of the COVID-19, the Economic Oda of Kosovo, the American Economic Oda in Kosovo, the German-Kosovo Economic Oda, the Council of European Investors and the Kosovo Manufacturers Club, are calling for the Government in office of the Republic of Kosovo to present with priority the package of emergency measures in support of companies and employees hit by measures undertaken to spread the pandemic.

Reiterating their position that private sector protection is vital for a stable economy and well-being, as well as to preserve the state's capacity for budget revenues, organisations representing private sector interests re-focus the need to compile and implement a government support programme with the aim of quick and inclusive intervention for the rescue of jobs.

Given the extremely negative impact the pandemic COVID-19 has had on the entire economic system and the delay of institutions to come to the aid of affected companies, a large number of the country's employees will remain without income since March. Such a situation would affect the further deepening of the situation, now a social challenge in the country.

Therefore, business organizations ask the Government to approve the liquidity programme, which would include (1) A financial package worth at least 300m euros for emergency phase (2) Subvention of wages to employees of all companies whose activities have been cut off or severely difficult, (3) Subvention of rent payments for all companies whose activity has been cut down or severely difficult, and (4) Subvention of all other operational expenditures for all companies whose activity has been largely disrupted or difficult.

Business organisations strongly believe that Kosovo has the necessary budgetary capacities for financial intervention, which could be realised through reorientation of planned means for capital investments, in the proposed liquidity programme. Economic efforts also remind Government that the percentage of public debt to the gross domestic product is low, which allows the necessary space for increased borrowing rates aimed at maintaining economic growth at a desired level.

Also, the government in office should immediately start drafting a recovery programme for the post-execution of COVID-19, which would include monetary means from the country's budget, but also from international financial organisations. Signatories of this declaration also require the Kosovo Assembly to support the measures presented by the incumbent government, including the necessary review of the 2020 budget.

All in the end, the Kosovo Economic Oda, the American Economic Oda in Kosovo, the German-Kosovo Economic Oda, the Council of European Investors and the Kosovo Manufacturers' Club remain committed to offering their unremitting support and expertise in the drafting of the programme, but also in identifying funds available to governments and the private sector in countries affected by the pandemic.