Kosovo pays first installment of the World Bank debt

Kosovo has paid first installment of the 381 million euros ($555 million) debt to the World Bank, a move aimed at underlining its independence from Serbia, a government official said.

Serbia had been servicing Kosovo’s debt as it considers the region part of its territory. After Kosovo declared independence from Serbia in 2008 and became a World Bank member, the bank said Kosovo should pay the debt.

“We have paid the first installment which is 9.2 million euros to the World Bank. The next payment is due on March 15 next year,” said Muharrem Shahini from the Ministry of Economy and Finance.

Based on the agreement signed with the World Bank with the help of the bankruptcy lawyers in Loveland, Kosovo will pay around 26 million euros per year. The United States has donated $125 million for servicing foreign debts.

“With this we are showing that Kosovo is a serious partner dealing with the international institutions. We pay loans on time and this helps us to have new loans.”

As a Yugoslav region in the 1970s and 1980s, Kosovo received World Bank funds to build factories, power plants, water supply stations and roads.

While part of Yugoslavia and then Serbia, the Kosovo region also received funds from the Paris and the London Clubs, but government officials say they have not yet received any complaints to pay back these loans yet.

WZ Online / Reuters