Businesses continue to shut down in Kosovo

Businesses continue to shut down in Kosovo

Pristina, 10 September 2015/Independent Balkan News Agency

By Elton Tota

Number of businesses that go bankrupt in Kosovo within a year is worrying.

According to the data from the Ministry of Commerce and Industry (MCI), 1,022 businesses have been shut down until the end of July this year.

The head of the Directorate for the Registration of Businesses, Mehdi Pllashniku says that 1, 361 businesses were shut down in 2013, while in 2014, 1,506 businesses.

Representatives of the business community say that the fact that more than 1 thousand businesses have been shut down during this period, must be a concern for the government of Kosovo.

Safet Gerxhaliu, head of Kosovo Chamber of Kosovo, notes that the business climate in Kosovo doesn’t serve development.

According to him, the main reasons why businesses are shutting down relates to the lack of the rule of law, high bank interest rates and the fall of purchase power.

“If we have businesses shutting down, how will jobs be created, how will the payment account be improved and how will the values of Kosovo be promoted through Made in Kosovo products? Kosovo will turn into a country depending on import”, Gerxhaliu says.

According to him, new alternatives must be explored in order to offer low interest loans in order for the business sector to benefit from concessions.

Arian Zeka, head of the American Chamber of Kosovo says that the number of businesses shutting down is growing from one year to another and for this, there must be a detailed analysis with owners of businesses that have shut down.

Zeka says that the number of businesses shutting down may be higher, because there are businesses which have just decided to be passive.

Meanwhile, expert of economic affairs, Ibrahim Rexhepi says that the number of registered businesses and those that shut down, is worrying.

According to him, what’s more worrying is the fact Kosovo still doesn’t have a sustainable business environment, while tax policies are not sufficient. /ibna/