The Budget and Transfers Committee has approved the draft law on ratifying the credit agreement between the Republic of Kosovo, represented by the Ministry of Finance, and the International Development Association for the Kosovo Financial Sector Development Project. The draft law received 6 votes in favor, 2 against, and 1 abstention.

MPs from the PDK, Kujtim Gashi and Mërgim Lushtaku, voted against the agreement.

Finance Minister Hekuran Murati provided clarifications on why the draft law should be approved, stating that it represents an opportunity to strengthen financial stability in the country.

He highlighted four key projects included in the agreement, including Kosovo’s integration into SERA.

“The agreement provides for the establishment and financing of the initial capital of the Development Bank, a very important project and a priority for our government. It also provides for an increase in capital in the Credit Guarantee Fund to create additional windows that improve access to financing for micro, small and medium enterprises. The agreement also supports the Deposit Insurance Fund through changes to the legal framework and additional capital, so that insured deposits in Kosovo’s banks increase from the current 5,000 euros to 10,000 euros. The fourth key component concerns Kosovo’s integration into SERA, which would result in significantly lower transfer costs than currently exist… The total amount of the agreement is 49.3 million euros, with a 5-year grace period and 25 years repayment for the 35 million euro component A. Component B amounts to 14 million euros, with a 5-year grace period and 5 years repayment,” he said.

PDK MP Kujtim Gashi stated that Kosovo does not need such borrowing, adding that MPs from his party in the Budget Committee do not support the agreement.

LDK MP Besian Mustafa, at the beginning of the committee meeting, requested that the agenda also include the issue of rising prices of goods, including fuel and energy.

He also asked for clarifications on why the 13th salary for certain categories had not been paid, despite being executed the previous day.

“I propose that the issue of fuel and energy prices, which affect all other product prices and worsen living standards, be addressed. We are simply requesting a report from the Minister of Finance on what the Government of Kosovo has done and what it plans to do to protect and support citizens against these prices,” he said.

Committee Chair Enver Haliti stated that these issues have already been addressed through LDK’s request for an extraordinary session scheduled for Friday.

The Budget Committee also reviewed several other draft laws on credit agreements with international institutions, including the French Development Agency for a policy-based lending program, KfW from Frankfurt for a similar energy and climate program, and another agreement with the International Development Association for the “Trade and Transport Facilitation in the Western Balkans 2.0” project.