a minute agoBringing public companies to Sovereign Fund, disturbing experiment for Kosovo economy
Periskopi(3 years ago)
(3 years ago)The Kosovo government has announced that soon public companies will be transported to the Kosovo Sovereign Fund. That, according to them, would increase investment opportunities. But economic connoisseurs estimate that public enterprises are more a burden of state than government contributors. Bringing public companies to the Sovereign Fund will [...]
Bringing public companies to the Sovereign Fund would be a disturbing experiment for the country's economy. Speaking to Radio Kosovo economy connoisseur Safet Gerjaliu estimates that more foreign experts than local experts, according to him, are not familiar with Kosovo's economic parameters, in the draft of the Sovereign Fund.
“Beyond the sovereign fund will open Pandora's box in terms of public enterprises, in particular Trepca, and third today public companies are much more of a burden to the state than contributing to the state, so in this respect, I believe such an experiment will be quite disturbing. You see the negative effects, you see what's happening in KEK, Trepca, COSTS and many other companies? So depoliticisation is the main road, not centralization. There can be no positive development with leftist policies”, Gerjaliu considers.
According to government planning, the Sovereign Fund will be an independent fund that will give no responsibility to either the Parliament or the Government. This situation, according to business representative Agim Sahin, brings us into an adverse position.
Because they don't give any responsibilities to themselves and they can't create strategies for which companies and how it takes for funds to be distributed into companies. Under this law, public companies will receive, not all Sovereign Funds, but some of them. And that tells us that he will be a fund, which will determine who to take, who to develop and who to finance and here I think should be an intervention even in management, classification and responsibility”, he said.
Otherwise, the Government of Kosovo reports that public companies, along with another 24 thousand assets, will be transported by the Government to the Sovereign Fund, which, according to them, will increase investment opportunities and improve their management. On May 7th, the Sovereign Fund's founding conference has been held. And according to the Government, public consultations have already ended and will soon be approved in Government. “The Sovereign Fund is the largest economic project ever in the country”, said the report.
