Economic recovery in pandemic was damaged by politicization

The effects of the fiscal emergency package as well as the recovery package approved by the Government of Kosovo, as assistance to citizens and businesses to alleviate the pandemic-related crisis, have produced tangible “results, according to government officials.

But economic connoisseurs and business representatives estimate that these packages were delayed, their effect was small after the money went mainly to consumption.

The Kosovo government has so far earmarked 280m euros in total as part of assistance for economic recovery from the pandemic, whose effect, according to Deputy Finance Minister Agim Krasniqi, has been evident.

But according to him, this effect would be greater if the vote by the Economic Recovery Bill was not blocked by the opposition.

This year, around 280 million in total for the Pack for Economic Regeneration. Some 250m euros in payments have been realised. If we look at the effect, in the economic sense, there's a cover of loss that has been estimated by ATK at about 1.2 billion, which means some of them are covered. The effect would have been much greater if adopted in time, the Economic Regeneration Law”, Krasniqi said.

He has said that part of the Economic Recovery Pack, which relates to the budget could start to implement without budget approval for 2021, and has urged MPs to vote on the budget.

Credit Guarantee Fund Functioned Soon

“Under the Law for Economic Regeneration, there are some articles that have nothing to do with the state budget and that have started to be implemented, such as attracting tools from the Kosovo Pension Trust. But there are also parts that are within the law that require approval of the” budget, he said.

Krasniqi has indicated that soon the Fund for Credit Guaranteement will be functional so that the private sector will have easier access to capital.

According to him, for this government fund, it will initially allocate around 182m euros.

The government will help with about 182 million, but under the law it must grow and can reach 260-280 million”, Krasniqi has indicated.

The deputy minister has indicated that it is envisioned that the new package will have increased subsidies for companies, as well as assistance from three months for workers who have lost their jobs from February to the end of 2020.