Kosovo has the lowest public debt in the region

Kosovo has the lowest public debt in the region

Pristina, August 21, 2014/Independent Balkan News Agency

By Elton Tota

Public debt of Kosovo amounts to 507 million Euros, or 9.91% of Gross Domestic Product (GDP). Sources from the Ministry of Finance say that the increase of this debt doesn’t pose any threats to financial stability in the country.

“The public debt of Kosovo currently amounts to 9.81% of GDP and compared to the countries of the region, it’s the lowest ones. Albania, Serbia and Croatia have a debt which goes over 60%”, declared Gezim Baxhaku, advisor of the Minister of Finances.

According to him, the government of Kosovo has taken debts to invest in given projects. According to him, the annual cost of the debt is no higher than 2% of the annual budget and doesn’t pose any threats for the financial stability of the Republic of Kosovo.

Meanwhile, according to figures of the Central Bank of Kosovo, gross foreign debt of Kosovo amounted to 1.58 billion Euros at the end of March.

“Public debt occupies 24% of foreign debt. Most of the public debt consists of the foreign debt that the government of Kosovo has taken and which at the end of March 2014 amounted to 317.4 million Euros. This value is 4.4 million Euros smaller than December 2013 and currently it’s attributed to the payment of the loan taken in the framework of the Stand-By Program with IMF and the loan issued by the World Bank”, says the report of the Central Bank of Kosovo.

According to official statistics, Croatia has the highest public debt in the region with 67% of GDP, followed by Albania with 63%, Serbia with 62% and FYR Macedonia with 28%. /ibna/