Backing Trust Money and Helping Business, Following New Law Adoption

Businesses, which have suffered losses from the Corleone pandemic, should also wait for the adoption of the Law for Economic Recovery to begin implementing the economic recovery package.

One of the businesses that has suffered financial losses due to pandemic is the oil factory “Inter-Company” from Podujevo. The owner of this company, Sylejman Konushevci, tells Radio Free Europe that he is expecting financial support from the Government of Kosovo.

Conushveci says that the losses are enormous, as the amount of production has dropped by 50 percent.

The losses were catastrophic. Now, for the situation to stabilise and come to the pre-pandem trend, two years is needed for stabilisation. We're hoping the government will help us. But we're waiting, promising, I don't know... whatever the government is, our company would help”, Konushevci said.
However, Conushveci's expectations also depend on the adoption of the Financial Recovery Bill.

This bill has been adopted by the Government of Kosovo on July 22nd and is aimed at helping businesses, subsequently, through fiscal and monetary policies, the country's overall economy.

The package for economic recovery amounts to 385m euros.

But, for the functioning entry of these means, the adoption of the Economic Recovery Bill, which currently stands for review at the Kosovo Parliament's Commission for Budget and Finance.

Kosovo Prime Minister Avdullah Hoti has said he expects “for the assembly to adopt the Economic Resurrection Law this week, to pave the way for implementation of the entire Pack for economic recovery”.

Otherwise, the government of Kosovo, on July 22nd, has approved the COVID-19 Economic Resurrection Bill.

By means of this bill, laws like these are changed and fulfilled: The law on the establishment of the Kosovar Fund for Cremation, the Law for Kosovo Pension Fund, the Law for Personal Finance Taxation, the Law on Added Value Taxation, the Law for Taxation on Corporation Revenues, the Law for the Kosovar Privatisation Agency, etc.

What does Bill for economic recovery foresee?
The draft for economic recovery, provided by Radio Free Europe, says that “Fondi Credi Cremor Reservative of Kosovo, (FKGK) authorises to issue credit guarantees with percentages of coverings from 50 to 80 percent”.

The Kosovar Fund for Creday Constance is an independent and stable institution that guarantees financial institutions to cover the risk of loans to small and medium-sized enterprises.

Also, contributors can attract 10 per cent of pension savings to the Kosovo Pension Savings Fund.

Later, social enterprise privatisation means can be used for all categories of expenditures, with the aim of realising economic recovery, excluding the wage category and additions.

As well as with the aim of economic recovery, the Finance Ministry could extend the tax payment deadline by up to two years from the date of the law's entry into force. The criteria for delaying deadlines are determined by the Finance Ministry.
For businesses who fail to pay their tax declaration, no punishment is pronounced, provided the payment is made in the first quarter of 2021.

This law if voted in the Kosovo Assembly will remain in force until December 31st, 2021. After that date, all provisions of this law will be automatically abolished.

Business representatives have consistently called on Kosovo authorities to help the economic recovery as soon as possible, as any delay, according to them, would bring bigger problems for their businesses and risk of bankruptcy.

Where will I get the money for the recovery package?
Deputy Finance Minister Agim Krasniqi, in a conversation for Radio Free Europe, explains that not all funds from the Pack of economic recovery are provided. Therefore, according to him, some funds will be provided through grants, the rest from international agreements awaiting ratification of the assembly, as well as some of the means will be obtained by the Privatisation Fund.
In addition to the draft economic recovery bill, expected to be adopted in the Kosovo Assembly, the past government led by Albin Kurti had approved the Emergency Fiscal Package, worth about 180m euros. These tools were split to ease the economic and social problems that are caused by the measures the Kosovo government has taken to prevent the spread of the coronary.

On the basis of the fiscal emergency package, of 130 euros, 170 euros have been paid, respectively, for workers who have not worked in March and April and paid 50 per cent of the rent. But, for April, still no payment has been made because the 2020 revised budget was not approved. The budget revision was approved on July 30th.
But, Kosovo Prime Minister Avdullah Hoti, on Monday, August 3rd, through a Facebook post, has said that <x0 think tank management has taken on tasks to make preparations to implement the measures for the assistance of citizens and businesses. Once the budget law goes into effect, we're going to start with the remaining outstanding payments”, Hoti wrote.

The Kosovo Assembly, 30 July, has adopted the 2020 Budget Review Bill. According to the Constitution that the Republic of Kosovo, up to eight days after adopting a law by the assembly, the same must be announced by the president of the Republic. After that, the law goes into effect, 15 days after publishing in the Official Journal of Kosovo, unless otherwise is determined in the law itself.