Kosovo from a virus crisis to an economic crisis

Kosovo, which has had an average economic growth of about 4 percent, has been insufficient to ease unemployment and economic and social problems.

After the coronary pandemic, problems will get worse, experts say, since there will be a reduction of economic growth from -2 to -4 percent, according to forecasts by the Central Bank of Kosovo. Meanwhile, according to the International Monetary Fund, after the pandemic, Kosovo's economy is expected to shrink by 5 per cent.

The measures taken so far by the Kosovo government to help the economy are considered insufficient and with delays in implementing them.

The executive director of the American Chamber of Economics in Kosovo, Arian Zeka, tells Radio Free Europe that the emergency Pack structure does not go towards private sector storage, survival of a larger number of private enterprises and maintenance of more jobs.

In such a situation, intervention and financial infusion on the part of the state should be much larger and should not be expert on this stage. We've been looking for a bigger one. Almost half of the 300 million we've asked for, says Zeka.

The World Bank in its report released this week has also stressed that Kosovo, as well as other countries in the region, will undergo economic contractions in 2020, as a result of preventative measures on Coronavirus.

Zeka: The extension of pandemic will deepen economic crisis

To help businesses, through Emergency Pacos, which totals about 180m euros, the Kosovo government has envisioned several measures as helping businesses.

Some of these measures have begun to be implemented, but some of the measures dealing with businesses, Zeka says, have many uncertainty and delays in implementation.

It criticises the country's institutions for not properly co-ordination over the measures being taken to help the country's economy.

The non-coordination of institutions, Zeka adds, will have even greater consequences on the economy.

“As never before, the country needs a political consensus as we are in crisis. The extension of the pandemic will deepen the crisis. The way we deal with the crisis and come up with less loss after the end of the pandemic will depend on the immediate actions that must be taken and that can conclude that we are late”, Zeka says.

Kosovo government plans second stimulating packages

Heroinda Julie, head of cabinet at the Ministry of Finance and Transfers, told Radio Free Europe that some of the package measures have been implemented and some of them will be initiated over the next few days.

To implement all the measures of this package, financial means are required for which the Kosovo government has pre-empted to cover grants and debts.

Julie explains that international borrowing requires approval of the Kosovo Assembly.

We are currently exploiting the current budget until the loan is realised. The double of social assistance has been realised, to businesses soon these days the online application to be made through the Kosovo Tax Administration system then the process begins. The execution of payments takes place at the end of the month”, she says.

After the damage caused to the economy by the pandemic is defined, Julie says there will be another government stimulating package.

To confront the new virus, which causes COVID-19. The European Union has earmarked 68m euros for Kosovo.

According to the EU, 5 million will go towards immediate needs to fight COVID-19, 50 million to cope with the economic crisis, as well as 13 million will be transferred to Kosovo's budget.

The United States of America has offered Kosovo 1.1m euros for the fight of Coronavirus.

To help Kosovo, The IMF has approved the loan worth 51.6m euros, assistance that is under the Fast Financing Instrument (RFI).

In Kosovo, the first corruption cases were marked on March 13th.

Kosovo's government has immediately taken steps to prevent the spread of corruption by limiting economic activities.