UNMIK
ON AIR
19 February
2004
“Long
term loans soon available for Kosovans”
(Valon A. Syla)
Slug:
Over
the last 20 years as a result of conflicts and economic instability, few
financing options were open to those in Kosovo wishing to start a business or running
existing businesses. In the last few
years, short-term loans were offered as a viable method to finance a
business…but few in Kosovo could take advantage of short-term loans due to
restrictions and astronomically high interest rates. But plans are in the works to expand the financing options
available to Kosovans…
Hello
And Welcome to UNMIK on Air
Over
the last 20 years as a result of conflicts and economic instability, few
financing options were open to those in Kosovo wishing to start a business or
running existing businesses. In the
last few years, short-term loans were offered as a viable method to finance a
business…but few in Kosovo could take advantage of short-term loans due to
restrictions and astronomically high interest rates. But plans are in the works to expand the financing options
available to Kosovans…
Current
Bank loans available to Kosovans are short-term and expensive. Blerim Gegolli a young businessmen from
Prishtina says he was surprised to see the high interest rate attached to the
loan he was offered. According to
Gegolli, short-term loans are financially out of reach for smaller business:
CUT
1 “20 percent of interest to pay to the bank means that for five years you
have to pay double the price. If you
have borrowed 100 thousand €uro for example, at the end of five years you have to pay 200 thousand €uro for the
five years of the loan’s duration. This is unreasonable”
Local
and international experts of long-term loans are now drawing up regulations to
make long-term loans accessible to people in Kosovo…meaning those in Kosovo
would have access to international lending institutions. Christian Lindmeier, a press officer of
UNMIK explains:
CUT
3 “Kosovo currently has a need for financing capital investments, while in
other hand many of the donors are reducing their donations. Currently Kosovo
does not generate the income, which could support these capital investments, so
the only option to be financed is to look at the international long-term loans.
This would be an injection for the improvement of infrastructure and other
public services that will improve the stance of Kosovan economy.”
But
which enterprises would be eligible for long-term loans?
According
to Gashi some public service enterprises in Kosovo demonstrate consistent
profit turn-over to garner the trust of a potential international lending
institution and secure a long-term loan:
CUT
4 “The ‘Prishtina Airport’ can get
long term loans considering that last year they have generated an income of 10
million €uros, meaning that they can pay back the loans they took out. Other
successful projects can be the landline telephone, some departments of the
Kosovo’s Energetic Cooperation (KEK) etc.”
Aside
from public service, smaller, private enterprises may arguably need long-term
loans in order to get off the ground, survive hard economic times or to
expand.
Bajram
Krasniqi owns two (WHAT KIND) shops in Prishtina. Krasniqi says he has plans to start a new business, and is
hopeful of the prospect of access to long-term loans:
CUT
5 – “It is impossible to start a
serious long term business without a long term loan. The current loan options
are very limited and short term, I’m not satisfied with the Bank policies at
all when it comes to loans”.
As
the groundwork is currently being laid to make long-term loans available to
Kosovo, economists say it will give the economically strapped region a much
needed and long -awaited option for its capital investments…
And
that was all for this edition of UNMIK on Air. Thanks for listening.