30 Oct 2010 / 16:27
Delays to the sale of Post and Telecommunications of Kosovo, a lucrative state asset, have deprived the budget of an expected 300 million euro.
Lavdim Hamidi
Failure to privatise Post and Telecommunications of Kosovo in 2010 has left a black hole in the country’s budget, worth about 300 million euro. Delays to the sale, planned for completion by the end of this year, are blamed on a breakdown in relations between the government’s coalition partners, the Democratic League of Kosovo, LDK, and the Democratic Party of Kosovo, PDK.
On October 16, the LDK, the junior partner in the coalition, walked out of the government led by Hashim Thaci. A snap general election is expected over the next few months.Parliament was expected to approve the sale of 75 per cent of the government’s stake in the socially owned firm on October 14.
The sale, already delayed once in July, was put back again after LDK deputies joined opposition parties in walking out of the chamber before the vote, depriving the assembly of a quorum.
The walkout happened despite international pressure on Kosovo to vote the deal through. The IMF has made it clear it wishes to see the sale go ahead.
The US Secretary of State, Hillary Clinton, also encouraged the sell-off on her recent visit to Kosovo. It is not clear when Kosovo’s parliament will be asked to vote again on the sale. Some experts say the next opportunity will not come before new elections, expected on February 13, 2011, at the latest.
The Ministry of Economy and Finance had budgeted to sell the PTK by the end of 2010. The ministry did not include an estimate for the value of the PTK in its projections for the years 2010 to 2013, published in September this year.However, the IMF has estimated the Post’s worth at about 300 million euro.
The Finance Ministry’s projections predict that the country will overspend by 273 million euro next year, by 260 million euro in 2012 and 215 million euro in 2013.The likely shortfall is mainly due to the cost of building the Vermice-Merdare highway, linking Kosovo to Albania.
The Ministry of Transport believes this major transport artery will cost Kosovo about 700 million euro. The World Bank puts the cost higher at about 1 billion euro. The IMF has advised Kosovo to sell PTK by 2011 at the latest in order to help pay for the new road.
However, Finance Ministry spokesman Muharrem Shahini told Balkan Insight that the ministry had made a conservative estimate of revenues for 2010 and was confident that any shortfall caused by the failure to sell the PTK could be covered.“Our projections show that at the end of 2010 the balance sheet will be better than what we predicted at the start of the year,” Shahani said.
Ministry officials remain confident that the PTK will be sold in 2011, and that Kosovo will not have to look on international markets for loans to cover the deficit. “All our projections show that Kosovo will not need to borrow from international markets in 2011,” Shahani said.
Safet Gerxhaliu, head of Kosovo’s Chamber of Commerce, agreed. The failure to privatise the PTK would negatively impact on next year’s budget plans, but Gerxhaliu was confident the company would be sold once a new government was in place.
However, economic expert Muhamet Sadiku told Balkan Insight that Kosovo’s budget is now in a state of crisis. PTK privatization has been scheduled for 2010 and this problem - combined with the possibility that the 2011 budget will not be approved if parliament is dissolved for snap elections - spells problems for the nation’s finances.
“Kosovo is entering a period of budgetary concern,” he said, especially considering that the 2011 budget is not likely to be ratified by parliament by the end of this year.”
Failure to privatise Post and Telecommunications of Kosovo in 2010 has left a black hole in the country’s budget, worth about 300 million euro. Delays to the sale, planned for completion by the end of this year, are blamed on a breakdown in relations between the government’s coalition partners, the Democratic League of Kosovo, LDK, and the Democratic Party of Kosovo, PDK.
On October 16, the LDK, the junior partner in the coalition, walked out of the government led by Hashim Thaci. A snap general election is expected over the next few months.Parliament was expected to approve the sale of 75 per cent of the government’s stake in the socially owned firm on October 14.
The sale, already delayed once in July, was put back again after LDK deputies joined opposition parties in walking out of the chamber before the vote, depriving the assembly of a quorum.
The walkout happened despite international pressure on Kosovo to vote the deal through. The IMF has made it clear it wishes to see the sale go ahead.
The US Secretary of State, Hillary Clinton, also encouraged the sell-off on her recent visit to Kosovo. It is not clear when Kosovo’s parliament will be asked to vote again on the sale. Some experts say the next opportunity will not come before new elections, expected on February 13, 2011, at the latest.
The Ministry of Economy and Finance had budgeted to sell the PTK by the end of 2010. The ministry did not include an estimate for the value of the PTK in its projections for the years 2010 to 2013, published in September this year.However, the IMF has estimated the Post’s worth at about 300 million euro.
The Finance Ministry’s projections predict that the country will overspend by 273 million euro next year, by 260 million euro in 2012 and 215 million euro in 2013.The likely shortfall is mainly due to the cost of building the Vermice-Merdare highway, linking Kosovo to Albania.
The Ministry of Transport believes this major transport artery will cost Kosovo about 700 million euro. The World Bank puts the cost higher at about 1 billion euro. The IMF has advised Kosovo to sell PTK by 2011 at the latest in order to help pay for the new road.
However, Finance Ministry spokesman Muharrem Shahini told Balkan Insight that the ministry had made a conservative estimate of revenues for 2010 and was confident that any shortfall caused by the failure to sell the PTK could be covered.“Our projections show that at the end of 2010 the balance sheet will be better than what we predicted at the start of the year,” Shahani said.
Ministry officials remain confident that the PTK will be sold in 2011, and that Kosovo will not have to look on international markets for loans to cover the deficit. “All our projections show that Kosovo will not need to borrow from international markets in 2011,” Shahani said.
Safet Gerxhaliu, head of Kosovo’s Chamber of Commerce, agreed. The failure to privatise the PTK would negatively impact on next year’s budget plans, but Gerxhaliu was confident the company would be sold once a new government was in place.
However, economic expert Muhamet Sadiku told Balkan Insight that Kosovo’s budget is now in a state of crisis. PTK privatization has been scheduled for 2010 and this problem - combined with the possibility that the 2011 budget will not be approved if parliament is dissolved for snap elections - spells problems for the nation’s finances.
“Kosovo is entering a period of budgetary concern,” he said, especially considering that the 2011 budget is not likely to be ratified by parliament by the end of this year.”
balkan insight
Δεν υπάρχουν σχόλια:
Δημοσίευση σχολίου