Package for economic recovery of around $300m, funds must be approved in the Assembly

The Kosovo government plans another package for economic recovery, which is expected to total nearly 300m euros.

This package of money will be realised through funds the government will provide. Which is aimed at targeting sectors that have suffered huge losses from pandemic, following government decisions.

This was made known for Online Economy by Deputy Minister of the Ministry of Finance and Transfers Agim Krasniqi.

Krasniqi stressed that businesses will also be helped through interest rates, but he clarified that Government cannot get 100 per cent guarantees of the banking system, as he said, it would be possible to increase bad loans.

The second “Part is part of the package for economic recovery. Through funds to be provided by the Government for external financing, grants that may come from international financial institutions that could be a fund that needs our economy at least 300 million. The sectors that have suffered greater losses should be targeted correctly. Some sectors have been closed, but some have been able to develop economic activity” in these conditions as well.

We need to focus on companies that have suffered because of government measures, we have to help them, but we need to focus on helping companies through the interest rates Government should take in certain cases and guarantees, here we need to be limited. Because guarantees can't take 100 per cent Government and the banking system don't take anything from you, because we had to increase the possibility that bad loans to increase”, Krasniqi said.

After overcoming isolation, Krasniqi says the package must be ready for businesses to start operating.

Deputy Prime Minister confirmed that two or three funds would be for production and exporter companies to change the economic structure and trade balance of payment, which Kosovo has negative.

This pandemic is expected to have a recession, but, according to Krasniqi, it will be sound. Until he added that the country cannot enter into debt to distribute the vehicles from Pako without seeing the economic effect.

The second phase in terms of economic recovery is in processing, it needs to quickly act for reasons that as soon as we act, the total isolation share is exceeded that companies immediately gave you injections and that they have the capacity to start work”.

We need to focus mainly on two funds from our production companies to start changing the economic structure and start thinking about exporting companies changing the trade or payment balance that we have negative. A recession is expected and we have to cross it like other countries. We have an opportunity that is due to the low public debt we have now used to increase public debt. We can't go into debt to distribute the tools without seeing the economic effect”, he said.

Co-operation with the Kosovo Assembly is needed for a sustainable economic recovery plan, as according to Krasniqi, the Government has legal restrictions for management of finance and responsibilities, reports EO.

The only government is a problem in overcoming the situation so closer co-operation with the Kosovo Assembly is needed. Otherwise the measures in case there is no co-ordination and co-operation, the possibilities are smaller because legal restrictions for management of finances and responsibilities”.

“52 million have come from the IMF, but other international agreements cannot make Government without the Parliament. We cannot make a stable good plan of economic recovery without a co-operation with the UN”, Krasniqi added.