Kosovo: More and more businesses are shutting down

Kosovo: More and more businesses are shutting down

Unfavorable tax policies, dishonest competition and high interest rates on loans, are some of the factors which have led to a significant number of businesses in Kosovo to shut down.

According to official data, the number of registered businesses in Kosovo is 150 thousand. Meanwhile, in 2016, according to the Agency for the Registration of Businesses, the number of companies that have been shut down was 2379.

The head of the Kosovo Business Alliance, Agim Shahini says that the latest survey conducted by this organization, has revealed that the number of businesses which have shut down is over 4 thousand.

“In a study on enterprise from 2000 to 2016, the Kosovo Business Alliance has seen the trend of registered businesses has grown, but there’s also been a growth in the trend of businesses shutting down”, Shahini says.

Shahini underlines that there are many factors which have had an impact in businesses shutting down. One of them relates to the high interest rates. According to the latest data from the Central Bank of Kosovo,  interest rates on loans amount to around 8,5%.

“The lack of subsidies for startup businesses and expanding businesses, the high interest on loans, high informality, the monopolies which have been created by several large businesses, have led to many businesses to shut down”, Shahini says.

Unemployment in Kosovo is around 28% and for years, Kosovo has faced an unfavorable business climate. /balkaneu.com/