Kosovo's internal debt affects 1 billion euros

Over 1.5 billion euros is in Kosovo's state debt.

The 2021 quarterly data on the overall debt involving key indicators of public debt indicate that the state's total debt has increased to the first three months of this year to exactly 1 billion and 528m euros, while with 31 director 2020 it was closed to an estimated 1 billion and 487m euros, the news writes.

According to Finance Ministry data, which has seen the news.net, the state's domestic debt for the first time has reached 1 billion euros, until the write-off of 961m euros was made on December 31, 2020. In 2019 it was smaller, 791m euros.

External debt, or international, is worth 516m euros. The state has taken loans to 13 different organisations for projects. The largest credit is to the International Development Association ENZH worth 140m euros, then to the International Bank for Construction and Development BNRZh, worth 118m euros, to the International Monetary Fund. ) IMF 97m euros, etc.

31m euros are blocked due to state guarantees.

Two new loans have been made by the government in the first three months -- one from the EURZH for “Infrastructure Emergency License Vitale”, worth 30m euros and the <x2nd> Blackwater Impiant Project on Gjilan” with 11m euros.

General debt is defined by the Law on Public Debt as the total of State Debt and Municipal Debt. State debt may be a direct debt or a sub-level debt. As for the jurisdiction he is subject to, the General Debt can be divided into International Debt and Internal Debt where domestic debt is subject to local jurisdiction, while the International may also be subject to jurisdictions outside the Republic of Kosovo.

International debt has begun to be established in 2009, with the legacy of loans from the former Yugoslavia with the World Bank, dubbed Consolidated Credit C, to then proceed with financing programmes of the International Monetary Fund (FMN) which serve for budgetary support, as well as financing for specific projects from various creditors, such as: World Bank (BB), German Bank for Reconstruction and Development ( KfW), the European Bank for Reconstruction and Development (BERZH) and other creditors with smaller participation. So far, international debt has been largely concessionary, with the majority of loans being under soft conditions from international financial institutions. The sectors that have benefited most from international borrowing are road infrastructure, water supply, sewage treatment, education, health and agriculture. The debt was recently created due to loans created to exceed the COVID-19 situation.

By the end of 2020, the stock of the inner debt portfolio has begun to be established by 2012, with the first release of the initially short-term Letters to continue with gradual growth of the maturity deadlines. Tools from domestic debt serve to finance the budget (deficiation) and are not destined for any specific project. Through the LV emissions strategy, the Ministry of Finance and Transfers has contributed to the gradual maturity of the LV portfolio, building a more stable recovery curve.