UNMIK/PR/1008
Thursday, 10 July 2003

EFC holds its Thirteenth Session

PRISTINA – Today the thirteenth Economic and Fiscal Council chaired by PDSRSG Charles Brayshaw, discussed among others investment and financing of KEK management, minority returns projects funding, various budgetary matters and fiscal recommendations, the update on the draft Customs Code and the CFA Transfer Regulation.
In order to improve the management and operation of KEK, based on Minister Sadriu’s proposal for a management reorganisation project at KEK, the KTA developed a strategy paper, which was circulated to the members of the Council. Pillar IV representative outlined the proposal and its funding needs. The Council, taking into consideration the urgency and the importance of the matter, advised to make Euro 1 million available from the KCB surplus.
The Head of UNMIK’s Office of Returns and Communities Peggy Hicks briefed the EFC on proposed projects for the Minority Returns Programme requiring urgent funding from the KCB surplus. “The open letter to the IDP’s signed last week by President Rugova, Prime Minister Rexhepi, Assembly President Daci and other party leaders demonstrates great significance and commitment of the Government to the minority returns program”, noted PDSRSG Brayshaw. Due to the urgency and the nature of the projects, the PISG committed itself to make funds available to a significant amount following detailed discussions on the working level.
Pillar IV briefed the EFC on the latest developments of the proposed two-tier tariff system, which would encourage investments in Kosovo. The Council was told that the World Bank would be ready to send an expert to present their position on this issue. On the matter of NGO VAT exemptions, all Council members were in agreement to discontinue such exemptions.
The Legal Adviser provided an update on the latest developments regarding the Customs Code. As the Assembly is still discussing the matter it was decided to allow the government and the assembly more time to give their comments. The Legal Adviser informed the Council that the CFA Transfer Regulation is close to finalisation.
A special fund for the defense of persons indicted by the ICTY and retroactive compensation for war invalids were also discussed.
The Ministry of Finance has provided budget documents on Mir-year Review, usage of surplus and the budget development for 2004-06, which will be taken up in a special EFC meeting in the coming weeks.