Kosovo: Privatisation funds unnecessarily frozen

Prishtinë, July 12, 2006 – According to an article published in Kosovar daily „Bota Sot“, the Kosovo Trust Agency (KTA) has accumulated over EUR 250 million through the privatisation fund. Officials have promised that 20% of these funds will be given to the commercial banks in Kosovo, which will enable better loan conditions for local businesses.

The local businessmen highly appreciated this news. It was soon apparent that the promise was made in vain. It was also promised that 20% of the means would be allocated to the employees of the enterprises.

While the first promise was completely forgotten, the second one is proceeding with utmost difficulties.

According to Advisor on Economic Issues to the Kosovo President, Isa Mustafa, KTA has no reason to freeze the funds, which are a result of the sale of the enterprise assets. Furthermore, not defining the ownership of former social enterprises in Kosovo has encouraged the Serbian authorities to contest not only the ownership, but also the entire privatisation process, reported Bota Sot.