Over 2.6 billion euros that cannot be affected by Kosovo state

Over 2.6 billion euros that cannot be affected by Kosovo state

The Republic of Kosovo has suffered huge financial losses due to the pandemic caused by the Coronervirus. To cover the losses, the incumbent Government of Kosovo is already negotiating even has approved agreements with several international financial institutions for borrowing at over 300m euros. Until the government intends to enter [...]

The Republic of Kosovo has suffered huge financial losses due to the pandemic caused by the Coronervirus. To cover the losses, the incumbent Government of Kosovo is already negotiating even has approved agreements with several international financial institutions for borrowing at over 300m euros.

As the government intends to enter international loans, Kosovo's Pension Savings Trust and the Kosovo Privatisation Agency keep most of the money blocked or invested in different states of Europe and the world.

More than 2.6 billion euros has reached the value of the means accumulated by these two institutions. Of this amount, over 1.9 billion euros are citizens' savings in the Kosovo Pension Savings Trust, while the Kosovo Privatisation Agency has collected over 765m euros from the 1993 sale of social enterprise assets.

Experts on economic issues estimate that at this time it is the necessary moment for finding ways to exploit these tools in the Kosovo market.

Majid Bektashi, professor at the University of Pristina, in a conversation for Radio Free Europe says that given the need for financial means and demand for economic recovery, the introduction of these means would affect improving the economic situation.

The other option is for means to be provided by the Kosovo Pension Trust or by the Kosovar Privatisation Agency Fund. The other option is for the Government of Kosovo to sell more valuable letters, treasury bonds and commercial banks that have surplus means to provide up to 200m euros, for intervention as infusion due to pandemic”, Bektas said.

The most pandemic caused by Coronavirus and finding opportunities to alleviate the negative effects on the economy, Bektas says he is making the political crisis difficult in the country following the successful vote of no-confidence on March 25th, against the government.

According to him, even for unlocking the means from the Pension Savings Trust and the Kosovo Privatisation Agency, change of legal base in the Assembly is needed. In this context, Bektash says the Parliament has also blocked ratification of international loans-taking agreements.

“I believe it is a mistake or an unwarranted delay for the Kosovo Parliament. So the political crisis will be the main cause for further deepening of the crisis from the pandemic”, Bektas says.

Trust, AKP have already invested part of Kosovo money

However, so far, the Trust of Pension Savings has already invested in Kosovo 570m euros, or 29 percent of all means in disposition, Demi spokesperson in the institution says of Radio Free Europe.

Of them 384m euros are purchase of the government's worth of letters, and about 186m euros are long-term deposits in Kosovo banks.

The Kosovo Privatisation Agency in Kosovo's budget has transferred over 381m euros.

According to the Kosovo Privatisation Agency, the fund raised by the sale of social companies envisions compensation for potential creditors of sold companies.

In contrast, the Teprice Fund under the Law for the AKP is said to define and declares as “Fonde Teprice” to 75 percent of any income that exceeds the estimated maximum.

Under the law, this amount could be used for the country's economic development, with approval of the Kosovo Assembly.

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