Loan guarantee fund, a hope for the economy of Kosovo

Loan guarantee fund, a hope for the economy of Kosovo

The government of Kosovo has allocated a loan guarantee fund to help small and medium sized businesses in Kosovo.

Sokol Havolli, chief of cabinet at Prime Minister Mustafa’s office, says that the Kosovo Loan Guarantee Fund has entered agreements with commercial banks to enable companies low interest loans.

“The agreements signed with commercial banks aim at stimulating loans for businesses, which contribute to economic growth. The effect of this fund will be around 360 million euros in the next five years and it will be one of the pillars that will speed up economic development without causing negative effects in the financial market”, Havolli says.

The head of Kosovo Chamber of Commerce, Safet Gerxhaliu says that the private sector faces high interests, but also bureaucratic procedures.

According to him, the loan guarantee fund will help businesses to advance, but this will not be a magic wand which will solve all the economic problems of the country.

USAID in partnership with the government of Kosovo and other donors were initiators of this fund. /