Pristina, 10 May 2016/Independent Balkan News Agency
By Elton Tota
Kosovo has a very low level of public debt compared to the countries of the region, namely 13,2% of GDP.
According to the European Commission, this debt is expected to mark a fall to 12,17% at the end of 2016.
Based on European Commission report, Albania and Serbia have the highest debt levels, which amount to 80% of GDP. Meanwhile, FYROM and Bosnia and Herzegovina’s debts amount to 40%.
Experts of economic affairs say that the level of debt must be in line with economic development.
Analyst Shkelzen Dakaj told IBNA that Kosovo’s debt can be dropped through a strong fiscal discipline, which will lead to a cut in expenses and a growth of incomes thanks to the fight against informality.
“Until the economy of Kosovo starts to mark a growth, then it is not good to borrow money from the International Monetary Fund or the World Bank. Public debt and the drop of business confidence are the main factors which are having a negative impact in our economy”, Dakaj says.
Professor of economics, Avdulla Prebreza told IBNA that Kosovo is a new state and the level of debt in the future may grow.
“The money borrowed by international institutions must be used for capital investments which generate incomes and new jobs. Let’s take a look at Japan. This country has the highest level of debt in the world, but it invests in innovation and specialized economy, through which it generates large profits”, he says.
Kosovo’s foreign debt amounts to 367,23 million euros or 6,27% of GDP. Domestic debt amounts to 352,25 million euros or 6% of GDP.
Kosovo has mainly borrowed from the European Bank for Reconstruction and Development and then from the IMF. /balkaneu.com/