Kosovo could be asked to pay back external debts twice
Prishtina, 17 February 2007 - Isa Mustafa, the Advisor for Economy to Kosovo President, said if the local institutions do not establish defense mechanisms within the Special Chamber of the Supreme Court, Kosovo might face the risk of twofold return of external debts.
It is likely for Kosovo to be approached by two creditors, the source creditor, as sovereign creditor, claiming repayment of debts from the Kosovo Government, but also a bank from Serbia could file a request to the Special Chamber.
“There is a difference between the sovereign debt, from the original creditor, and the commercial debt, from the foreign creditor (World Bank, Paris Club or London Club) through a certain bank from Serbia,” said Mustafa.
Mustafa also stated that even though Kosovo has expressed readiness to accept the external debts, the Kosovo group in Vienna has declared being against repayment of the external debts made during the period 1989 – 1999.