Government of the Republic of Kosovo will be able to borrow up to 40% of the GDP as public debt, with the creation of capital market in Kosovo. Such an opportunity is offered by the Law on Public Debt, which will be discussed in Parliament in the next session.
According to the Deputy Minister of Economy and Finance, Bedri Hamza, this law could go into force next year with the creation of the capital market, treasury notes market and the possibility of issuing government guarantees.
State debt could be issued as treasury notes or financial contracts. The Minister of Economy and Finance is the only person authorized to negotiate financial contracts and authorize the issuance of financial instruments. Kosovo Central Bank could be named as a financial fiscal agent of the Ministry of Economy and Finance after an agreement between the two on the sell-off of treasury notes, maintenance of treasury notes stock and easing of the creation of treasury notes
With the adoption of this law, more conditions will be fulfilled for the withdrawal of a larger part of government and other financial institution funds, which are currently invested in other countries. Kosovo Pension Fund, in the absence of this law, cannot invest its funds in Kosovo.
According to an earlier analysis, the cost of creating the market will be around EUR 4.3 million.
New Kosova Report