Kosovo's millions of wealth, in the hands of the Sovereign Fund: If Trust comes in, there's too much risk.

Gerxhaliu says the Government of Kosovo should have real analysis of this fund, which according to him, is implemented in few countries.

“For the Sovereign Fund has talked a lot of weather, along the ruling party's election campaign. We should really have real analysis, it should be understood that such models were implemented in Norway, Singapore and Kuwait, but Kosovo differs from diametrically in terms of the economy of these states”, Gerxhaliu said.

According to Gerxhaliu, the consequences will be disturbing if you do not address the right steps, since, as he mentioned, European countries have not implemented such a project.

European countries have not implemented such a project, so it takes real analysis not to make any mistakes in the process because the consequences may be disturbing. That's what I'm saying, given the fact that some public companies are in huge financial problems, on the other hand only Trepca has about 700 thousand euros in losses”, Gerjaliu said.

Gerjaliu says that if Trust money is introduced through the Sovereign Fund, risk will be great.

Therefore, if it is thought that through the Sovereign Fund the pension Trust money will be put into place, I believe there is risk in itself, where I fear a pandora box will be opened which will also have political implications known to be the main basis for the purpose of this fund is political stability, and Kosovo has no”, Gerjaliu told Blic newspaper.

Economist Lulzim Beqiri, meanwhile, sees the founding of the Sovereign Fund as a very important step for the country's economic development.

Beqiri says that, with the draft draft establishing the sovereign fund, we realise it will be the largest and most developmental fund behind Kosovo since the end of the last war.

“The establishment of the sovereign fund is an extremely important step of Kosovo's economic development, it will play the vital role of the development and welfare of citizens of the Republic of Kosovo. Based on the sovereign fund creation bill, we understand that it will be the largest and most developmental fund behind Kosovo since the end of the recent war, as the sovereign fund is initially envisioned will join public enterprises with the largest circulation, and this is a good opportunity to develop many sectors, especially in production and export abroad”, Beqiri says.

“According to the Institute of Sovereign Property Funds (IFPS), currently in the world there are over 150 sovereign funds that play vital roles in their economy, so I think that even our sovereign fund will play developmental role, even clearly channeling the performance of capital and infrastructure developments in the country”, Beqiri added.

According to Beqiri, the Sovereign Fund should join the pension savings fund.

While, he sees Trepca, KEK and Infrakos finding support of the fund.

I think the sovereign fund should join the pension savings fund as a contributor to the country's development. There are many public companies that need sovereign fund support in order to increase both their profit and the development of a competitive environment, Trepca has extraordinary development capacity, then KEK, InfraCos and many serious state companies”, Beqiri says.

“Therefore, in economic development prism, I see the fund as the first light of long-term development, this fund is the right strategy in the country's economic current, European region”, Beqiri said.

As of yesterday, Prime Minister Albin Kurti has said that Kosovo is close to establishing the Sovereign Fund, which will create profits for the state.

He has said establishing this fund will be a solid basis for developing Kosovo's economy.

“We are a step closer to adopting the bill and with it the crowning of the idea that has started with the concept of the Sovereign Fund, led by Besnik Pula last year. Our government stands firmly behind this vision, believing that such initiatives will result in the stabilisation of the economy through diversity, creating profits for the state through wise investments. Public companies will become integral part of the Sovereign Fund”, he has indicated.

Kurti further cited some of the changes in public enterprises, saying they have returned from money-losing companies to profit companies.

What is known so far for the Sovereign Fund of the Republic of Kosovo?

The Sovereign Fund is expected to carry Kosovo's most important public wealth.

This has started to be regulated through a draft law on the Sovereign Fund, which was published on March 13th and until April 2nd has been in public consultation. After the consultations, it is envisioned to proceed for approval in Government and later in the Kosovo Assembly. But so far there's no information about what happened to him.

The bill defines the Sovereign Fund as Kosovo's investment and development institution. The founding capital of the Sovereign Fund, reportedly in the bill, is 20m euros and covered by the Government of Kosovo.

Through the administration of Kosovo companies and assets, the Sovereign Fund targets the country's “development and the welfare of citizens”.

The draft law says the Sovereign Fund will manage with Kosovo's important assets by increasing value, performance and return to investments to be made.

In this wealth, which will manage the Sovereign Fund, public state companies, social companies and assets, which are currently managed by the Kosovar Privatisation Agency (AKP), enter.

But this law does not apply to direct-owned public enterprises of the Republic of Kosovo or municipalities.

According to estimates by the Bill's working group for the Sovereign Fund, some of the public companies, which have been identified as carrying the Sovereign Fund, are:

Kosovo Energy Corporation
Kosovo Telecom
Kosovo Mail
Trepca metallural Nation
Traincos
Infraco

The Sovereign Fund will be carried by the Kosovo Privatisation Agency, even several social and asset companies.

According to the AKP, with high economic potential there are 94 assets and about 48 thousand hectares of land that can be transported to the Sovereign Fund.

Ninety-four assets include mines, administrative and local buildings, factories, hotels, farms, various warehouses, gas stations, rehabilitation centres, offices, agricultural land of all categories and others.

The Sovereign Fund, according to the draft law, also has in place the establishment of new companies as well as it can invest in financial markets and capital markets within and outside the country.