Kosovo delays package for economic recovery

The Kosovo government has adopted a fiscal emergency package worth about 180m euros, but as such this package is considered more social and not a package that helps the economy overcome the crisis and recover.

Economic Affairs expert Safet Gerjaliu tells Radio Free Europe that Kosovo is entering an economic crisis into an even deeper economic crisis, and the state is not acting in the right time and way.

It is true that the biggest shocks from such a situation have sustained the private sector and the business community. In this direction we have said that Kosovo's biggest challenge in the future will not be the Corleone pandemic, but economic pandemic and unfortunately political pandemic”, Gerjaliu says.

Kosovo, Gerjaliu adds, urgently needs approval of the package for economic recovery, as the already approved fiscal emergency package is more of a package of social than developmental nature.

Resurresion package still in its early stage

The incumbent Kosovo government has envisioned a special fiscal package, which will focus on economic recovery, but still has no plan when it can be approved and what it contains.

Acting Deputy Minister of Finance and Transfers Agim Krasniqi says of Radio Free Europe, the first package has had some measures helping businesses, but that the second package of recovery will focus only on economic recovery.

Yet, his opinion is not known when such a package will be approved.

The incumbent “Prime Minister Albin Kurti will soon form a team where it will be the representatives of the ministry of the line, representatives of the economic associations, in order to start preparing the package for economic recovery. If this package ends quickly, the consequences in the economy will be smaller”, Krasniqi says.

Funds for the second package will be taken in loans from international financial institutions, Krasniqi says, but for that, he adds, must be overcome by problems that are being presented in the political and judicial respect.

Kosovo's “Framework should give the government the opportunity to enter the loan”, Krasniqi says.

Under the legislation in effect in Kosovo, to borrow international loans, approval from the Kosovo Assembly is necessary by two-thirds.

O EC: Second package must be 600m euros

Kosovo's Economic Oda (OEK), in a done research, estimates that Kosovo would need up to 600m euros to ease the economic damage caused by COVID-19.

OEK Mayor Berat Rukiqi has said the figure of up to 600m euros would help businesses get out of the economic crisis that has been introduced.

“This figure can be a proper contribution and can affect rapid economic recovery. If adequate measures are taken, we have the curve of the letter V, which is a rapid recovery, if adequate measures are not taken then recession gets the letter U and the length of the recovery is much longer in terms of”, Rukiqi says.