Kosovo: € 300 million of KTA to remain frozen

Prishtina, 1 December 2006 – It is likely that around €300 million collected from the privatization process will remain “frozen” in the Trust Fund for a long time. Ahmet Shala, Senior KTA Offial, said this Fund will not be transferred to the Kosovo Consolidated Budget and be managed by the Government. “The Government is willing to transfer the Fund, but they have no strategy how to use this fund,” said Shala.

Shala also said the fund will certainly be unblocked one day, but for the time being it remains under KTA supervision. Naser Grajcevci, Government coordinator for the development strategy of Kosovo, said the local authorities should manage the Trust Fund. “As the Trust Fund is very important for the economic development, our strategy foresees for the fund to be managed by the Central Banking Authority of Kosovo (CBAK),” said Grajcevci.

Grajcevci also said the Government is planning to stablish a fund of mixed ownership, state-public and private, which would support economic sectors or and SMEs.