The effect of pandemic: Many businesses can default, unemployment and social cases will rise

Do not open businesses as a result of the spread of Coronavius is risking their survival. Company owner “Frutex”, Shaqir Palushi, told Online Economy, that strong financial support is needed to achieve business recovery.

Palushi stressed that business failure is also affecting businesses that are operating.

“Don't open businesses as a result of the measures undertaken by the Government of Kosovo after the spread of the Devid 19 virus, certainly endangers their survival, given that most of these businesses are particularly committed to banks and will be very difficult to recover without financial support”.

The subx0> Do not open these businesses has an impact on other businesses that are operating because the supply for these businesses is thus cut off, so even the businesses that are working are working with reduced capacities”, he said.

Among other things, Palushi pointed out that many businesses could go bankrupt as a result of their closure, such as gastronomy and hotel sector.

This is also evident in the company's case tonight where the very important sector for us has been the hotel sector, restaurants and cafes, and as a result of their non-opening we have a drop of at least 30%”.

“Of course the Government has acted directly with the measures taken, nor am I accusing Government, but that doesn't mean that we have to reconcile with the fact that many businesses can go bankrupt as a result of closing them”, he said.

He said the government should help these businesses, otherwise, as he said, increase unemployment and social cases, the EO reports.

I think the Government and competent institutions have the obligation to make sure that these businesses, which for many years have contributed to Kosovo's budget, do not go bankrupt, leaving many workers without jobs and creating social cases that would still be burdens to institutions, so the promise is always better and easier than taking the consequences with”, he said.

To get out of this crisis, Palushi said the government must prepare the second emergency package, which, according to him, should be dedicated to the endangered sectors, as well as allow credit access.

The government will also have to prepare the second emergency package dedicated to the most endangered sectors, even though there is no sector that has not been damaged by this situation created”, he said, EO reports.

I believe the Government will have to act in two directions: First by preparing the second financial package. The second, enabling funds from the Privatisation Agency and the Pension Trust to be extended to commercial banks and commercial banks to also be willing to offer loans with low interest and especially with period women, for these businesses”, Palushi has said.