News & Events

03 December 2014

Kosovo institutional crisis affecting country’s finances already

Prishtina - The five-month political wrangling between Albanian political parties in Kosovo - over who has the right to form the new government - is already affecting negatively country’s economy and finances.

According to latest data there is significant decrease of custom duties and tax collection mainly because of the deadlock associated also with fall of foreign direct investments.

Officials from the ministry of finance warned that if the deadlock continues further then Kosovo risk of falling into a serious financial crisis as well.

Finance Minister Besim Beqaj said that beside six percent decrease of custom duties but also of tax collection by Kosovan Tax Administration.

According to Beqaj, the main reasons are the decrease in state incomes is ‘political blockade’ but also the ‘decrease of foreign investments’.

The Democratic party of Kosovo (PDK) won 30 percent of votes in June parliamentary elections, but insufficient to rule alone which made four opposition parties to join forces in search of a majority in the 120-seat parliament to deny outgoing premier Hashim Thaçi a fourth term.



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