REPUBLIKA E KOSOVËS/REPUBLIKA KOSOVA/ REPUBLIC OF KOSOVO QEVERIA E KOSOVËS / VLADA KOSOVA /GOVERNMENT OF KOSOVO
THE SECRETARIAT OF THE NATIONAL COUNCIL FOR ECONOMY AND INVESTMENTS
MEETING MINUTES (Virtual)
Second meeting Tuesday, 24 November 2020, 12:00 hrs Prishtina
Supported by:
REPUBLIKA E KOSOVËS/REPUBLIKA KOSOVA/ REPUBLIC OF KOSOVO QEVERIA E KOSOVËS / VLADA KOSOVA /GOVERNMENT OF KOSOVA National Council for Economy and Investments (NCEI) in Kosovo Secretariat
Second meeting – 24 November 2020
Agenda (Facilitation by the NCEI’ Secretariat)
12:00 – 12:10 Introductory speech – Chairman of the NCEI - Mr. Avdullah Hoti, Prime Minister of the Republic of Kosovo Approval of the minutes report of the NCEI’s first meeting and of the agenda
12:10 – 12:35 Discussion on issues raised by the NCEI members - Ministers: . Ms. Hykmete Bajrami, Minister of Finance . Mr. Blerim Kuçi, Minister of Economy and Environment . Mr. Vesel Krasniqi, Minister of Trade and Industry . Mr. Fehmi Mehmeti, Governor of the Central Bank of Kosovo
12:35 – 12:45 Presentation by the Secretariat – Summary note and action plan for the working groups - Ms. Lindita Daija – Head of the NCEI’s Secretariat
12:45 – 13:15 Discussions by the NCEI members – business associations
13:15 – 13:20 Other discussions
13:20 – 13:30 Review and approval of the NCEI Regulation
13:30 – 13:35 Conclusions, Chairman of the NCEI, Mr. Avdullah Hoti, Prime Minister of Kosovo Decision on the NCEI’s future meeting
Avdullah Hoti (Prime Minister): We apologize for starting a little late! If you all agree, since the presidents of the chambers of commerce and the ministers, or their deputies, are all here, we shall start the meeting according to the agenda you have received.
This is the second meeting of the National Council for Economy and Investments; its date was decided twice previously, but it had to be postponed due to objective reasons related to the organization of events in this situation. Even today, two of the ministers were not able to attend because they have been affected by Corona and must remain isolated.
I propose to continue according to the agenda you have received, with the exception of the regulation, which it seems that we will have to look at once again, because we have just adopted the Regulation on Internal Organization of the Office of the Prime Minister, where we have integrated the offices. There are some issues related to principle and legality which we must consider when finalizing this regulation. In addition to the functioning of the Council, this regulation also provides for the Secretariat and we must integrate this Secretariat within the Office of the Prime Minister.
So, allow me to present some of my views as introductory words, some of my own assessments of the joint work we have done so far, and then I will ask the ministers or deputy ministers to take the floor and cover issues that are within their scope.
Allow me to use this opportunity to thank the chambers of commerce and the different associations for all the comments they have sent, and the Secretariat of the Council, Lindita and her other collaborators who have categorized all the requests coming from the Chambers of Commerce, together with the Office for Strategic Planning. Let me also thank Professor Gazmend and others, who summarized the issues from the chambers of commerce for the ministers. I expect the ministers to address in their words concretely the issues raised by the chambers of commerce.
Our intention is to immediately address the issues we can address now, and we will listen to what the ministers and the representatives of the chambers have to say, and then we will agree on a list of reforms for a new fiscal package, which we should start developing immediately after this meeting, with the objective of completing it by the end of this year or in January, with the secondary legislation as well, as far as possible. If there are issues that need to be addressed through laws, it will take us more time of course and it will also have to go through the assembly.
Regarding the economic situation, you are directly involved. The initial estimates were that we would not face the intensity of the pandemic as we are facing now, and our expectations were that we would end the year with significantly smaller consequences from the pandemic compared to the latest estimates from the Central Bank of Kosovo, which go up to 7%.
Our goal is to recover, by the end of the year, the economy almost completely through the economic recovery package, as well as the effects on businesses as a result of the pandemic. Of course, this support will not be provided to each individual business, but as a total, the infusion given to the business sector by the government reaches about 5% of the Gross Domestic Product; this value is almost equal to the consequences suffered by the economy as a result of the pandemic. Among the decisions taken recently in this regard, we have allocated EUR 87 million, focusing on the economy, including EUR 60 million already allocated to businesses with simplified procedures, without any application procedures, based only on the number of employees, excluding certain categories of companies which function in regulated markets. The Ministry of Finance is now preparing another package addressing single-employee companies, the number of which is rather high. With the amount of EUR 60 million, mentioned above, 36,679 businesses were supported, that means 206,582 employees. And the aid they received was probably equal to 80% of the average monthly wage that workers in the private sector receive, on average we are talking about, including the aid that was received in the first half of the year through the payment of rent or other forms. I believe it is symbolic help, but it helps businesses stay in the market because our focus in the short term is to help businesses stay in the market, in the hope that we will overcome this pandemic and then return to normal economic activity.
The other measures that we have agreed upon together – that is, in addition to the EUR 60 million I mentioned earlier, some of which are already being implemented - include several packages that affect certain groups of business and society, such as Measure 10 which targets women and the employment of women in the amount of EUR 2 million. Let me inform you that all the procedures have been completed, i.e. the announcement and the selection, and I expect that some of the contracts will be signed tomorrow, which represent support provided by the Office for Gender Equality under the Office of the Prime Minister through the allocation of funds for women in business. Special support will also be provided to the community, in the amount of EUR 2 million. All the procedures have been completed for this measure as well, and in a couple of weeks all these funds will enter the economy.
Ministry of Regional Development, I believe that you were involved in the selection procedures, related to a sum of EUR 2 million; we have helped with EUR 5 million the Ministry of Culture for all sports federations and youth and cultural issues. I was present myself; two weeks ago with Minister Dumoshi we met all the sports federations. I want to say that sport has become a business, a sector in itself. According to the information we have received from all federations, there are over 25,000 people involved in different forms, in all different clubs, in all kinds of sports; it really is a big industry.
In the Ministry of Economy there is also an amount of EUR 1 million for entrepreneurship issues, as far as I know. We have the Deputy Minister Nitaj here and he can inform us later, but not all procedures have been completed yet. In agriculture, we have the Minister of Agriculture here, I believe he will speak later. We have already allocated the first EUR 12 million, for an additional EUR 24 million that we have allocated for doubling subsidies in agriculture. So…these are the measures we have taken so far. The ministers will inform you in more detail about their actions and we will address the issues you have raised in the Secretariat of the National Council for Economy and Investments.
Finally, what I wanted to bring to your attention is a list of developments in economic and political agreements related to Kosovo, as I believe that our business community should be prepared for these developments in the coming months. We have probably discussed the Washington agreement before, where there is a pretty long list of infrastructure and energy projects that the business community and chambers of commerce should help us with, and get ready to be part of implementing agreements, part of the procedures for the implementation of these agreements. In particular, the railway, the highway, but also the gas, the delivery of gas to Prishtina, initially from Skopje, but also the railway to Durres, which are large projects that require a fairly wide cross-sector involvement of businesses. The second is the cross-sector list of investment projects that we have prepared in the Government and based on which we will start the implementation process. We will have to see which ones we can cover with a regular budget and for which should we seek international debt to be financed together with donors and other development partners.
I would also like to inform you that in the first part of December we will have a conference, let us call it a “coordination” meeting with donors on issues related to economic recovery because now is the time for support by a large number of donors, including UN agencies, which spend a lot of money in Kosovo on an annual basis, USAID, KfW and other donors working in Kosovo…we will sit down to put together our efforts and our funds for 2021, i.e. the support we need to provide to businesses in 2021, so that we can develop the recovery package for the first half of next year.
Let me inform you that the economic recovery fund in the amount of EUR 182 million is part of the budget for 2021 and, continuing our practice of cooperation with the business community, chambers of commerce and various associations, we will sit down together to design the measures of this economic package. On this occasion I would like to thank UNDP its support in developing the operational plan for the implementation of economic recovery measures through the preparation of the document of the stages to be followed, including an overview of best practices. It has really helped us a lot in preparing the criteria for each of the measures we approved in the Government, before making them public, starting from the amount of EUR 60 million, the measure of agriculture and women in economy, support for communities and regional development, and so on. Finally I would like to thank the CBK – together with the Minister of Finance we met them 3 weeks ago and I received a list of recommendations from businesses on issues related to commercial banks that need to be addressed through the Central Bank, including a review of the necessary regulations issued by the CBK regarding the classification of loans, the setting of different fees for the services provided by banks, and in particular addressing some issues that we discussed with Professor Gazmendi in the last meeting with the Kosovo Chamber of Commerce. The latter has submitted a list of issues which I also believe ought to be addressed by the Central Bank of Kosovo. I hope Deputy Governor Havolli, who is here with us, has seen the remarks of the Chamber of Commerce and other chambers and will be able to provide an answer to those concerns, regarding in particular the steps we need to take to address those remarks /concerns in the coming weeks.
I will stop here, thank you very much!
If Lindita agrees, I would now leave it to her to moderate this meeting onwards and I would ask the ministers to speak, starting from the Deputy Minister of Minister Mr. Krasniqi, the Deputy Minister Mr. Ministri Nitaj from the Minister of Economy and Environment, the Minister of Trade and Industry, and the Deputy Governor Havolli.
Lindita Daija (NCEI Secretariat): Thank you honored Prime Minister for this detailed presentation and especially for the measures which the Government of Kosovo has managed to implement during this time! I am glad that this table of genuine public-private discussion is taking place as planned, i.e. 3 months after the first meeting, which is the term set by this Council for meeting and discussing with the private sector. I am also glad that, despite the challenges we are facing during this time of pandemic and the fact that many of the participants were unable to attend due to being infected with the virus – as we informed you at the beginning, they sent substitutes to ensure that this meeting would be held. To keep it short, we have the Deputy Minister of Finance, Mr. Agim Krasniqi, to whom I pas the floor now. He will be followed by Mr. Muharrem Nitaj, who is the Deputy Minister of Economy, and then we will continue with other presentations.
Agim Krasniqi (Ministry of Finance): Thank you! Greetings Prime Minister, ministers and deputy ministers and all participants! A lot of what I had planned to say has already been covered by the Prime Minister, so I am not going to repeat them. As the Ministry of Finance, in addition to our daily work, during this time we are preparing to deal with two problems. First, we are helping the health sector and trying to protect the public sector by maintaining the level of public investment as much as possible; and second, together with the government cabinet, we are analyzing all options, within the restrictions we are facing, to help the private sector, as by helping the private sector we help the country’s economy.
Not to repeat everything that has already been said…we had initially estimated a downfall of 3.2% in the GDP, but the latest estimates are that we will have an economic decline of about 6.7% due to the negative impact on private investment and the stagnation in implementation of the remaining part of public investments as a result of the uncertainty and isolation.
Let me inform you about the latest data which show that, contrary to our initial projections, according to which we would have a decrease in revenues of about EUR 230 million, the latest projections show that we will close this year with about EUR 320 million less revenues.
This will reflect on the closing of this year and the opportunities that we will have in relation to the implementation of the program or the measures that we have foreseen.
We see that the concequences of COVID-19 will not be limited to 2020; they will continue in 2021. Therefore, the budget of 2021 has taken into account all these elements and a budget of EUR 2.4 billion has prepared, which I think is appropriate for the economic reality. It is a real and feasible budget and, as the Prime Minister emphasized, the budget also includes the funds for maintaining the economic recovery program worth EUR 182 million. We have maintained public investments, which are very important for the private sector as well, and within this program we plan to allocate about EUR 30 million for health, while we will discuss with the government cabinet, chambers and representatives on how to divide the remaining funds.
Within this year's economic recovery program of EUR 365 million, EUR 242 million have been allocated so far and about EUR 207 million have been spent, while regarding the remaining funds, we expect that line ministries, based on criteria approved by the government, will be paid or fulfill their obligations within this year, so that the space for discussion for next year is more efficient.
Due to non-adoption of the Law on Economic Recovery, we will have fewer opportunities to help the private sector, about EUR 100 million, expected to be provided by the KPA, and as the Prime Minister said, we are preparing to help at least 2-3 sectors, with the recent decision, mainly sectors that have been part of the program of EUR 290, more precisely, self-employed businesses. Two other sectors of special importance are also targeted, as the last decision says that eligibility depends on the number of employees in December. This has left some institutions outside…also the limit of 5% in case there were fewer employees has attacked these activities, so we expect the final decision to cover around 16,000 businesses.
Something else I do not believe we will be able to do this year…because as I mentioned earlier, revenues have decreased not by EUR 232 million as initially estimated, but by EUR 320 million.
We are trying to convince and cooperate with all budget organizations to implement their public investment plan, because it would be a direct help to the private sector in ensuring an increased turnover and liquidity of this sector.
So, the goal is to achieve economic recovery not only through policies and direct assistance, but also through the part related to revenues, but this depends a lot on the adoption of the Law of Economic Recovery.
Avdullah Hoti (Prime Minister): Deputy Minister, if I may interfere…Lindita, I apologize for interfering! I would ask from you and the other ministers who take the floor, to summarize your activities related to the economic recovery package as briefly as possible, and if you could please address the issues that the Secretariat has listed and which fall within the scope of the ministry of finance and other ministries. You have received this list before, so it is the list of issues that the chambers and various associations have raised and that fall within the scope of the Ministry of Finance, of the Ministry of Economy and Environment, of the Ministry of Trade and so on. So, Deputy Minister, if you have the document in front of you, could you please address the issues listed there briefly, in order to leave space to the other ministers before the floor is given to the chambers.
Agim Krasniqi (Ministry of Finance): All right, thank you Prime Minister! But I do not have that document and therefore I can not respond to all those requests. The Minister was scheduled to participate in this meeting, but because of her health situation I am substituting her. I have only made a general presentation, and some of the requests will certainly already be addressed with the new program that is planned for next year. So, I am sorry, but I do not have these obligations listed correctly, but I believe that in the end I will be able to respond in writing to this part. I was finishing my speech for today, so thank you!
Avdullah Hoti (Prime Minister): Then, let us agree that by the end of the day or by tomorrow at the latest, you will send the answers to each issue to Lindita and she will then forward them to the other members of the Council.
Agim Krasniqi (Ministry of Finance): Alright then, we will send them today or tomorrow.
Lindita Daija (NCEI Secretariat): Thank you Mr. Prime Minister, thank you Mr. Krasniqi! As we said at the beginning of the meeting, due to the pandemic we have had some changes in the last minute and I hope you do not mind the protocol in terms of ranking. We will now give the word to Mr. Nitaj from the Ministry of Economy and Environment; he is substituting Mr. Kuçi, who yesterday resulted positive with Covid-19. His presentation covers most of the issues raised by us and focuses on energy, based on our request from the previous meeting, Mr. Prime Minister. It focuses on the transformation of the economy or energy into green energy, the actions pertaining to the energy-related auction, as well as the interventions they have made in terms of the portfolio for small enterprises, entrepreneurship and innovation. Thank you Mr. Nitaj, the floor is yours.
Muharrem Nitaj (Ministry of Economy and Environment)
Honored Prime Minister,
Honored ministers and other participants of the private sector,
From the last meeting of the National Council for Economy and Investments in Kosovo, we can say that some things have marked a good progress, but there also issues where no progress has been made. I have to point out that our helping hand to businesses is linked to the Law on Economic Recovery, whose adoption is not seen on the horizon.
Let me use this opportunity and this council to appeal to the coalition, but also to the entire Kosovar politics, that we must pass this law on recovery.
As the Minister of Economy and Environment, although the scope of our work is wide, we consider that the security of electricity supply at affordable cost and in cohesion with environmental protection is the basis of economic development. However, the needs emerged especially due to the COVID-19 pandemic have shown that favorable conditions must be created for the digitalization of the economy and the development of the green economy.
The Government of Kosovo has a program that envisages sustainable economic development, consisting of economic, social and environmental components. In this regard, green economy has received our focus. Our commitment has been almost uninterrupted in all the components of the green economy, which are: environment, energy, health and economy.
The equation between economy and health has not been fair in these pandemic times, as maintaining health has damaged economic health. As the Government of Kosovo, we have donated assistance to businesses, to the extent possible under the legal framework.
Recently, the Ministry of Economy and Environment allocated EUR 60 million to businesses for operating costs of salaries, and the budget for assistance to public enterprises has also been supplemented with EUR 1 million.
On the other hand, EUR 1 million that were foreseen to be allocated as grants to private enterprises under the entrepreneurship measure have been reassigned for unblocking the aggravated financial situation of the Public Enterprise “Trepça”.
The Ministry of Economy and Environment, in close cooperation with the Secretariat of the National Council for Economy and Investments in Kosovo, has already started working in the Working Group on Entrepreneurship, incorporating the approach of the private sector, as the Law on Entrepreneurship and Innovation is in process.
At this pace, work is being done on the creation of the Working Group on Green Economy, as a crucial moment to transform the economy into another way of functioning with the help of digitalization. Energy is one of the areas in which a lot of work has been done. The Ministry of Economy and Environment has been part of many panels, meetings and conferences on Energy.
The commitment of the Government of Kosovo for the development of mixed energy sources is one of the main objectives reflected in all strategic documents of the sector, including the current Energy Strategy 2017-2026. All this aims to address e security of supply and optimize sources from coal, gas and renewable sources.
Kosovo has agreed to work, based on the pre-feasibility study conducted by MCC, on the development of the gas network for the following project proposals: 1) Gas transmission network and 2) Investment in the construction of secondary and tertiary reserve and building a capacity of small gas generation in electricity. We see gas as an important component in its use for industry as well as thermal heating.
I want to emphasize that the development of the gas network should be viewed from a regional perspective since Kosovo is a small market. Therefore, the development of the regional concept would increase economic efficiency and make its use more effective.
Renewable resources are a priority for the government in the context of the energy transition. By 2030, based on the obligations in relation to the European Union, we expect to install new capacity of about 600MW, mainly from solar and wind sources. The total capacity of these resources will be determined through the Energy and Climate Plan 2021-2030 as well as the review of the current energy strategy.
We are currently working with the EBRD on the development of competitive market procedures and a sustainable system for building new capacity, in order to meet the target for renewable resources. We are also working with the European Commission, USAID, IFC and KfW on similar projects and I am convinced that in the medium term we will have the first major projects in terms of renewable resource capacity.
Concrete steps have already been taken in the development of the procedures for the Renewable Energy Auction, concerning which we hope to make the first call in June 2021.
We are aware of the unfavorable situation in relation to coal, both from the perspective of financing but also from the environmental aspect in terms of industrial emissions.
I want to remind you that we have started the transition from a baseline of over 95% coal-based generation, so the idea that we can change this structure for a short period is unrealistic and very costly in terms of security of supply, as well as tariffs and price affordability.
Let me emphasize that coal for us is also a socio-economic issue, as currently there are over 5000 persons employed directly in this sector, with several thousand others employed indirectly, and it brings annual revenues of about EUR 200 million.
Therefore, in order to diversify resources and sustainability in the development of the sector, we are reviewing the energy strategy, and I want to emphasize that this review is subject to four main criteria:
- Security of supply - Lower cost options - Compliance with environmental requirements, and - Development of a mixed portfolio of energy sources.
I will conclude my presentation repeating what I said at the beginning. I hope that by the next meeting of the National Council for Economy and Investments we will have the Law on Economic Recovery adopted. Thank you for your attention and I am open to any questions!
Lindita Daija (NCEI Secretariat): Mr. Nitaj, thank you very much for this presentation! The issues we had on the list are fully covered, but if other questions are made during private sector discussions, we will continue to work as we usually do with the Secretariat. Next comes the Minister of Trade and Industry, Mr. Vesel Krasniqi, who is a close collaborator of the Secretariat, because we have many areas related to the private sector, especially the portfolio of small and medium enterprises, which make up the majority of businesses in Kosovo. I hope Mr. Krasniqi will also focus on investments, the KIESA agency, and strategic investments. The word is yours, Mr. Krasniqi.
Vesel Krasniqi (Minister of Trade and Industry): Hello Lindita, greetings to you and your staff and thank you for the work you have done and are doing in this pandemic time, for which you deserve our deepest appreciation. Also, I want to thank the Prime Minister, Ministers, Deputy Ministers, as well as the representatives of the chambers of commerce, which are one of the main actors and with their contribution have always been the voice of businesses. I would also like to thank and greet Massimiliano, the World Bank representative who is in constant contact with us and the relevant departments for the implementation of grants coming from the World Bank.
Today I will focus more on what we have done as MTI in support of the private sector in this time of pandemic as well as on the implementation of the action plan and legislative framework for this year. Initially, in terms of economic recovery, based on the government's decision on the Economic Recovery Implementation Plan, we immediately began work on drafting the conditions and drafting bylaws for the implementation of the Law on Recovery.
In direct support of the private sector, the MTI in agreement with the World Bank has changed the destination of EUR 10.4 million over two years towards business investments in (1) technology; (2) machinery; and (3) standardization.
In addition, the KIESA within the MTI has implemented grants in the amount of EUR 600,000 for private businesses. Of the 24 beneficiaries, over 30% are businesses owned by women. In addition, the MTI has also implemented grants worth EUR 1 million for women-run businesses. Continuing to empower women economically, the MTI plans to budget around EUR 400,000 each year for women- run businesses.
Regarding the service sector in Kosovo, in the framework of the Recovery Plan, the MTI has planned to provide support to service enterprises through subsidies for software systems, consulting on marketing and business plan development, financial management support and human resources management, as well as support for networking, value chain creation, service certification, and standardization of service enterprises.
With the support of the European Commission, the MTI has launched the project “Assistance in the implementation of the Stabilization and Association Agreement - EU Services Directive" worth EUR 1 million. This project aims to implement trade directives in services and will be implemented by the Croatian-German consortium, in cooperation with the Ministry of Trade and Industry.
Regarding other activities, the Ministry has convened the Inter-Ministerial Commission for Strategic Investments, wherein it established two operational groups to review the applications of potential strategic investors, based on the Law on Strategic Investments. In addition, the Law on Strategic Investments, which expires at the end of 2020, is in the process of being amended.
In cooperation with the Ministry of Justice and the Secretariat of the NCEI, we have started the procedures and meetings of the working group for amending the Law on Foreign Investments, as the need for reviewing this law was stressed by both the Ministry of Trade and Industry and the Ministry of Justice.
In the framework of the Strategy for Support of Industry and Business Environment Development, which is foreseen to be finalized in November 2021, the following activities have been implemented: - The members of the working group, which will be established during this month, have been identified, - The analysis of the processing industry sectors has been finalized by the Department of Industry, - The measurement indicators that will be part of the strategy have been identified, - Existing documents related to the processing industry have been consulted, - Potential donors for technical assistance have been contacted. We are still waiting for a response from the Office of Strategic Planning and the UNDP.
In terms of trade, MTI is in the process of drafting a legal framework on trade, which includes the Draft Law on Foreign Trade, the Draft Law on Internal Trade, and the Draft Law on Electronic Commerce. - The Draft Law on Foreign Trade regulates foreign trade in accordance with international best practices, protecting domestic producers from unfair international trade practices and contributing to improving the well-being of the people of Kosovo. Kosovo is already part of the regional market through the CEFTA agreement, part of the EU market through the SAA and aims to be part of the World Trade Organization in the future. Therefore, the drafting of a new law would be in line with the rules and principles of the WTO, SAA and CEFTA. I also want to mention that some weeks ago we had a virtual meeting, which was our first meeting or so to say the first step towards joining the EFTA organization; and the meeting was quite fruitful. - The Draft Law on Internal Trade will define the principles and general conditions for conducting commercial activity in the internal market of the Republic of Kosovo, which will include retail trade in a fixed enterprise; retail trade in public places; food and beverage supply; sale of food and beverages for consumption in premises without table service; and special modalities of retail trade and wholesale trade contributing to the improvement of the well-being of the people of Kosovo. The MTI has received a concept note from USAID and is considering it before deciding on further steps. This draft law has passed the public consultation procedures. - Also, we have initiated in the Government agenda the establishment of the Executive Commission, which was approved by the Government of Kosovo last week. This weekend or next week, the chairperson will convene the first meeting, where we will review and conclude this recommendation from the EU.
The MTI, in coordination with the NCEI Secretariat and the USAID will continue the cooperation procedures related to amending and drafting the legal framework on trade. Thank you!
Lindita Daija (NCEI Secretariat): Thank you Mr. Vesel Krasniqi for this detailed presentation, and for the cooperation on the working group. To conclude the presentations of ministers, we have the Minister of Agriculture Mr. Besian Mustafa, whom we wish a welcome to work after going through the COVID-19. After him we will give the floor to the Deputy Governor of the Central Bank of Kosovo, before continuing to the discussion of the chambers. Mr. Mustafa, you can go on.
Besian Mustafa (Minister of Agriculture, Forestry and Rural Development): Thank you Linda! Greetings Prime Minister, Ministers, Deputy Ministers, greetings to all. I am just going to give you, as also requested by the Prime Minister, a quick overview of payments we have made in the Ministry of Agriculture, Forestry and Rural Development during 2020. As I reported in the first meeting, when we came to office in February of this year, we found over EUR 25 million liabilities or debts to farmer beneficiaries under the two essential programs implemented by the Ministry, namely the grant program and the subsidy program. I initially apologize for my voice because I have not recovered completely yet. I hope you can hear me.
Concerning grant payments, this year we have managed to pay grants to 410 beneficiaries, to whom there were outstanding liabilities from 2018 and 2019, using the budget of 2020, in the amount of EUR 13 million. We also repaid the debts of 2019 amounting to EUR 8.9 million, for the subsidies of 2019, using the budget of 2020. We also used the 2020 budget to cover the expenses of subsidies under the 2020 subsidies program in the amount of EUR 18.5 million. So, to summarize, we have paid EUR 27.4 million in subsidies this year, EUR 13 million in grants, and a total of EUR 40.4 million paid to farmers so far, adding to this the EUR 2 million in compensation of 25% of the value of damage from natural disasters for the period January-June. So in total, we have paid EUR 42.4 million grants and subsidies or in budget language, subsidies and transfers to farmers, both individual farmers and company.
So, EUR 42.4 million, continuing with the regular payments that will continue until the end of the year for subsidies and grants of 2020, and of course adding here the doubling of subsidies for 2020, where EUR 12 million have already been allocated and we will continue to pay for all of these. It is estimated that a small part of liabilities for 2020will have to be moved to the first quarter of 2021. However, we will have a total of EUR 79 million in grants and subsidies under the program grants and subsidies for agriculture and farmers for 2020. To repeat, we have spent a total of EUR 79 million. Thank you Lindita, this is all I had, just a quick overview of the payments we have made and will make soon.
Lindita Daija (NCEI Secretariat): Thank you, honorable Minister Mustafa. In the last meeting you gave a very thorough presentation of all the measures taken in the agricultural sector. I believe that this update was very welcome and we will continue the genuine cooperation with you. The final speaker for the discussions of the first block is Mr. Sokol Havolli, Deputy Governor of the CBK. Last week, the recommendations of all member and partner chambers of commerce were also sent through the Prime Minister and the Ministry of Finance. Let me emphasize that we have 10 member chambers, but we are also cooperating with some others such as the Banking Association and the Insurance Association, which raise various claims falling under the CBK’s scope. Mr. Havolli will provide us more details. Thank you!
Sokol Havolli (CBK): Thank you very much! Honoured Prime Minister Hoti, ministers and representatives of institutions, Seeking to save time, I will go straight to the description of a main component of the banking sector related to the economic recovery or funding of the activity in the country, i.e. briefly discuss the lending. We should emphasize that lending pace during 2020 was good, bar the period of total lockdown. Currently, the loan level totals to EUR 3.2 billion at the country level, which represents an annual increase of 7.6%. Loans issued in the last quarter, namely period July-September, amounts to EUR 486 million. New loans represent an annual growth of 30%, which constitutes a robust growth. Growth in lending was definitely enabled by the measures undertaken by the CBK, aimed at facilitating the burden of borrowers for paying debts by facilitating regulatory requirements as well. However, given the fact that the pandemic is continuing and there may be further adverse effects, the Central Bank remains committed to undertake new measures to support the economic activity in the country. We thank Prime Minister Hoti and Minister Bajrami for their visit to the Central Bank, where we discussed a range of these measures. However, there is another range of measures aimed at ensuring sustainable funding of the economic activity in the country. These measures have been recommended by the IMF and undertaken by the European Central Bank. The purpose of the Central Bank is to lower the capital requirement in the banking sector from 12% to 10% in order for the banking system to continue to have sufficient capacities to lend the economy. We should mention that with regards to the stability of financial sector, the financial sector has generally seen the best days during this period amid the pandemic and so far adverse effects have been seen in each segment, including the financial sector in the country. However, what is the most important is that we are certain for the stability of the banking sector and capacity of the banking sector to fund the economic activity in the country. The contribution of the banking sector will further increase, in particular following the approval of the Law on Economic Recovery, including the issues raised by the private sector, given that a significant part of the recovery package is based on the measures for facilitating the access to finances. Subsidy of interest rates and guarantee of loans is expected to have a substantial role in increasing the loan financing in economy. However, we should consider making the support schemes as effective as possible, setting the eligibility criteria for the potential beneficiaries. We should keep in mind the fact that the financial position of a significant part of businesses and individuals has been adversely affected by the crisis, but this should not exclude them from benefiting from the facilitation of access to finances because they may be categorized as bad borrowers. If the Credit Guarantee Fund would accept guaranteeing loans of customers who have had no problem with settling the loan, then it would end up supporting customers who even without such a scheme would ensure access to loans. Therefore, we should keep in mind that in case of an eventual deterioration as a result of the pandemics, a mitigating situation should be considered. This has been one of the concerns raised by the Prime Minister Hoti during the visit to the Central Bank. The Central Bank is working to establish a mechanism that facilitates the classification of borrowers who had problems as a result of the pandemic and distinguish between other borrowers who have faced delays or problems due to other reasons and due to the pandemics. Among the issues discussed with Prime Minister Hoti and Minister Bajrami, the Central Bank is currently working on a new reporting format as to the classification. Some of the issues raised by the Kosovo Chamber of Commerce we consider to have been addressed if we consider the fact that the Credit Guarantee Fund is expected to increase the level of coverage or guarantee at 80%, i.e. directly related to the first point, and this does not restrict the type of business that should be covered. Third point, only the classification will automatically enable the potential rescheduling and the classification, if it happens, will have another effect due to the pandemic and also other issues raised by the Kosovo Chamber of Commerce, for instance "Lending to new businesses," then the potential use of KGF will surely create sufficient guarantee for the banking sector to increase its lending to the private sector. The CBK remains committed to be open for all its professional capacities, as we promised during the meetings of the previous weeks with the Prime Minister Hoti and Minister Bajrami. We will contribute to the implementation phase by making the financial sector as one of the main mechanisms for recovering the economic development in the country. Thank you for your attention!
Lindita Daija (NCEI Secretariat): Thank you Mr. Havolli for presentation from the CBK. I can say that in the previous meeting the Kosovo Chamber of Commerce and American Chamber presented the measures required by the Central Bank and mainly related to the lending of the economy, such as increase of KGF capital, as well as subsidy of interest rates in higher amounts, as mentioned in the requirement "amount above 150 million". I believe that all requirements of the Chambers, including the partner ones mentioned above, Bank Association and Insurance Association, have submitted requests to us, which we have forwarded in a summarised document. For additional explanations, before moving to the part of discussions between chambers, the Secretariat prepares a summary note, and as we exceeded the time limit, I will focus on key points. It is obvious that the economic decline is worse than foreseen in the first quarter according to the CBK with 7.2% with the latest projections, with 6 to 7.5% according to the International Monetary Fund and slightly gloomier forecasts from the World Bank with 8.8%. However, I can say that despite all these presentations for recovery, 2021 will see a better recovery in terms of the pandemics, given the positive news as to the development of vaccines and we believe that the financial year 2021 expects an increase from 4 to 6%. The Secretariat, summarising the key points, focusing also on the Law on Recovery for which it has submitted feedbacks, but also on the transformation of the economy and some of key points, which I will briefly discuss. Some of the key requests of the private sector supported by the Secretariat are: Supplementing - amending the Law on Public Procurement Fiscal policies as a mean to stimulate potential sectors, i.e. including tax breaks for foreign investors, investors from diaspora, for 3 to 7 years The legislative framework for supporting the export given that during this period we have faced challenges in the circulation of goods, in addition to people. In fiscal policies as a mean to stimulate potential sectors: exemption from various customs and tax duties in certain goods and raw material, a policy that would directly or indirectly increase production or reimbursement of deductible VAT, as well as acceleration of reimbursement procedures.
With regards to the economic recovery, I believe that given the delays in the law approval, the Government of Kosovo should prepare a Plan B in order to see how it can fulfil these measures through other existing ways. Also, we have stated the Draft Law on Inspections, which is in the last draft and would be very useful in increasing the monitoring of performance and businesses and genuine increase of the sound businesses in the market. These were some of the key recommendations presented and supported in the summary note of the Secretariat. Furthermore, we will continue the work as presented from 3 ministries so far, i.e. working groups for the Law on Investments, upon the initiative of MoJ and MTI in Foreign Direct Investments, Law on Entrepreneurship and Innovation through the Ministry of Economy and Consultative Working Group to impact the employment with MLSW or Employment Agency. These are groups that meet with the Chambers in cooperation with the technical and political staff of the Ministries to cooperate and contribute for these specific measures. We are now at the part of discussions of Chambers, where I will give the floor to the Chair of the Chamber of Doing Business in Kosovo, Mr. Skender Krasniqi, as in the previous meeting the Kosovo Chamber of Commerce, American Chamber, German Chamber and KBA made a thorough presentation.
Skender Krasniqi (CDBK): Chamber of Doing Business in Kosovo (CDBK), in the framework of ongoing meetings with the relevant institutions, has prepared and is continuously following its recommendations in order to support the private sector to overcome the economic crisis caused by the global pandemic COVID-19. The situation in the country due to the pandemics has hit the private sector the most, including the domestic producers. In this meeting we focus on the domestic producers, which we consider that should be supported and stimulated in order to withstand the effects of the pandemic. Given the difficult situation we are experiencing, CDBK reiterates the request to lift the measure of curfew and increase measures undertaken 24 h. The reason behind this suggestion is that we are witnessing mass circulation of citizens in shops, streets and cafeteria, respecting almost no rule, such as the restricted number based on square meters in a shop or market, restricted number in cafeteria and 2-meter distance between tables or the maximum number of 5 persons allowed in a table. Recommendation of CDBK: increase measures, apply rules for 24 h and lift movement restrictions.
With regards to the Law on Economic Recovery, CDBK is requesting inclusion of the following requirements:
Treat the raw material same as the case when purchased abroad, i.e. apply the same conditions when purchasing it at home (exemption from VAT); Increase the fund for credit guarantee to EUR 300 million; CBK should reduce the interest rate to 1.7% in order for the commercial banks to reduce the interest rates. Reduce VAT for food, tourism and hotel to 5%;
Support for producers includes: Establish the fund “PATRIOT”, where all domestic products are subsidised with 10% when penetrating the market, as well as export of products is subsidised with 10%
This support will be provided during this period in order to support the domestic producers and promote investments to increase the export. For your information, Kosovo, from 2015 to 2019, namely 5 years following the entry into force of the SAA, increased the export for only 58 million € per year, whereas import continued with an enormous increase for more than EUR 1 billion per year. It has been estimated that both CEFTA and SAA will have a positive impact, but the reality looks different.
Information: During these years, Albania increased the export for EUR 500 million per year, whereas the import for EUR 1 billion per year, whereas Macedonia, during these 5 years, increased the export for EUR 2.6 billion per year, whereas the import for EUR 2.3 billion per year, i.e. managed to have higher export than import. Other requirements: 1. Treat the Law on Strategic Investments with priority. Based on information from MTI, they are currently waiting from more than EUR 1 billion in investments to pass and obtain the status of the strategic investor. There are also 2 investors who have already passed all phases and are awaiting the inclusion in the agenda of the Government for voting and commencing the investment of their capital. 2. Solve problems faced by businesses during the transit with Serbia, where the business is obliged to obtain two phytosanitary certificates from the goods country of origin, e.g. Germany, namely one with the inscription Republic of Kosovo to enter Kosovo and one with Kosovo i Metohija to transit across Serbia. 3. Requirements for the CBK Restore the original version of the Guideline on the Implementation of the Bonus-Malus System for Legal Entities, as approved by the General Assembly of the Kosovo Insurance Bureau in relation to the registration of vehicles, which entered into force on 1 November. Lift the interest of 5-8 % for exchanging coins into banknotes, as imposed by the CBK; Lower the POS use fees for businesses from 1-3% to at least 0.25%.
As a conclusion, we once again request from Prime Minister Hoti to move forward these requests of businesses in these difficult times in order for less severe economic decline and ensure recovery after the pandemics, which will be present for at least 6 months. A positive consequence of this pandemic is the increase of information technology use and service, which is having a direct impact on our children, as they are gaining knowledge of how to use the technology (for example e-learning). Therefore, when we are in difficult situation, at least we can try to take advantage of the opportunities given to us.
Lindita Daija (NCEI Secretariat):
Thank you Mr. Skender! As you know, NCEI changed the name. The Secretariat extends gratitude for your close cooperation, always accompanied by facts and supporting documents. Let us give the floor to Mrs. Linda Shala, who this time will speak about assistance and measures undertaken for one of the most sensitive categories, i.e. women businesses. Linda Shala G7:
Hello everyone! The Women's Chamber of Commerce, and I believe all Business Associations, request a greater mobilization in order for the Law on Economic Recovery to be approved as soon as possible. Secondly, I would like to extend my gratitude to the Agency for Gender Equality for approving their request, namely a very important sector of private kindergartens, as the Prime Minister mentioned, will soon, namely in the coming week, receive the first financial support, which is very important for them. Also, we have received a positive assessment from beneficiary businesses, where most of them are women businesses, not only for the material benefit, but also for believing that there indeed will be ways and opportunities for the state to support businesses affected by the pandemic. I will further raise three issues: 1. With regards to the access to finances, a commission will be established within the Credit Guarantee Fund, which will assist the businesses in their affairs with banks, namely by being a party in the application of businesses for various loans because based on the previous experience with banks, in particular during the pandemic for postponing loan payment, most of businesses have no professional knowledge for banks and their products. Also, the Central Bank should conduct checks in order for the businesses to clearly and accurately know in what arrangements they are entering with the bank in order to avoid situations, as it was the case where the banks abused in the case of loan payment postponement, in particular when they enter contractual relationships along with the Credit Guarantee Fund. This means monitoring the implementation of agreements with businesses by banks; 2. We believe that businesses registered in KBRA as self-employment will be treated the same as the private kindergartens. A relatively small number of them is very sensitive and are mainly women businesses. Therefore, if possible, find a budget to directly assist those businesses given the fact that they have not been covered by the emergency package because they have been entered into the system very late or in the 60 million package, because indeed they have not declared any employee. What we have understood, there is an initiative and we believe that it can be done, because the fund to support these businesses will not be high; 3. Within the Credit Guarantee Fund, in the name of the STIKK Association, we request opening a specific window named Innovation in order to support start-ups, new IT businesses as a sector with development potential and which we believe that it has great perspective given the fact that online work has been increased a lot during the pandemic. I would like that in the next meetings of NCEI we have concrete response in relation with what can be done and what cannot be done, in order for businesses to not insists with requests that cannot be fulfilled. We should be clear and move forward processes where we can do something, where there are no legal restrictions and restrictions from international organizations that support Kosovo economic recovery and strengthening projects.
Lindita Daija: Thank you very much Linda! As you already mentioned, most of the requests have been fulfilled from the budget of the Government and there are numerous, which are not part of the Law on Economic Recovery, which have not been approved yet. As there are two or three chambers that would like to discuss, I would like to take this opportunity for discussion because in the previous meetings we had more time for presentation of Chambers, i.e. Mr. Milazim Abazi and Mrs. Lumnije Ajdini want to take the floor. I also want to inform you that our international partners Mr. Neil Taylor from EBRD, Mr. Massimiliano Paolucci from World Bank, Mr. Vadim Deleu from European Commission, Mr. Pozhegu from U.S. Embassy and Mrs. Dardane Peja from USAID, as well as Heads from KIESA, Customs and TAK are present as well. I will pass the floor to Mrs. Arieta Pozhegu, who wants to make a brief statement about something.
Arieta Vula Pozhegu (AWPK): Hello! As we all are here together, I request that all Chambers of Commerce and Business Associations be invited for the next Assembly, where it will be discussed for the economic recovery package, and all representatives take the floor. All of us discuss and give press releases, but, as it can be seen, nothing has happened. We, as civil society, organizations and business associations, should have a stronger voice in this regards, because we are very late as regards the package compared to other states. I consider that we all agree in this point, namely to participate in the Assembly and take several minutes to express the situation of the sector or the group that we are representing. Let us see who votes for and against. We, as civil society, represent certain groups and therefore we are responsible for what is happening.
Lindita Daija: Thank you Arieta for this request! The Secretariat has already initiated the review and analysis of this initiative in order to organize a meeting with Chambers and Associations of Businesses, at least with the Economic Commission, if not with the Assembly in entirety. We will continue with this initiative and keep you informed. Thank you! Mrs. Lumnije Hajdini, you can take the floor!
Lumnije Hajdini (KBA): Honoured Prime Minister, ministers, representatives of the World Bank, European Commission, USAID, U.S. Embassy, EBRD and all counterparts from Chambers of Commerce. From the emergence of the pandemic on 14 March, the Business Alliance has had daily meetings with representatives of the Government and of the Assembly of Kosovo. This situation is difficult, as mentioned my colleague Arieta. Non approval of the Law on Economic Recovery by the members of the Parliament of Kosovo has been shocking for the private sector because they are receiving their salaries whereas the private sector is in miserable condition. I want to thank the Prime Minister and Minister of Finance for lifting the excise duty for non-alcoholic beverages. This excise duty has been a burden for the sector of non-alcoholic beverages in Kosovo. Moreover, despite being amid the pandemic, we are promoting domestic products, continuing the 18-year tradition for their promotion. However, due to the pandemic and anti- COVID measures, we have conducted activities at the exporters of Kosovo in those countries that have not recognized Kosovo, as well as in the countries of the European Union, with which we have a good cooperation and relationship. With regards to the export, export subsidy, we are aware that the Law on Economic Recovery includes measures resulted from our cooperation, as representatives of the Alliance, Chambers and my colleagues with the Prime Minister to draft these measures. As it can be seen, these have been considered and we are witnessing what is happening. However, we should focus on what we, as business community and government, can do because currently the Assembly is not functional. I want to inform you that KBA holds daily meetings with all groups, parliamentary committees and members of parliament. Honestly, Kosovo businesses are fed up. We requested participation of all Chambers in the session and be part of their meeting, in order to see their reaction, even though we can see that their position is not changing. However, I call on the Prime Minister, further to the direct support of EUR 60 million and other supports in relevant ministries, to exempt the raw material from tax as it is under the scope of the Ministry of Finance, as was mentioned by other colleagues as well. The Law concerning the exemption from customs duty contains an article that foresees the right of the Minister of Finance to add to the list of products for exemption from customs duty, but subject to the approval of the Government Cabinet. I believe that the PM will do this very soon. With regards to the subsidy of exports, we, aware of the state of our exporters, have held numerous meetings with the CBK Governor. We are disappointed that commercial banks took advantage of the situation, despite their statements for the issuance of new loans. This does not stand: first of all, they have rescheduled loans; secondly, following the postponement of loans, large businesses with loans of more than EUR 1 million had to pay the installment of EUR 27000, which payment was impossible at that time. There are numerous modalities that we can jointly employ. KBA will continue cooperation and stand by the Government, to which I want to extend my gratitude because the Government, the Prime Minister and all ministers have done their job. Members of Parliament are those who are stalling our efforts. I call on my colleagues to hold regular meetings with media as to the issue of the delay of the Law on Economic Recovery. The Prime Minister mentioned that in the first part of December a meeting with donors will be held, where he can lobby and have some measures that could be implemented, because I hope that the Law on Economic Recovery will be approved, but I do not expect it to happen within these two weeks. Dear Lindita. I want to add that you should remove from recommendations the item "lifting of excise duty for non-alcoholic beverages and transport machinery", as it has been implemented as recommendation by the Ministry of Finance and Prime Minister. With regards to other recommendations, we are continuously cooperating with you. I request from Minister Veseli to briefly inform us on the progress of the Law on Internal Trade and in the capacity of the member of Social Economic Council, I inform you that we have worked on two issues, namely minimum salary and general collective agreement. However, due to the pandemic, we agreed to discuss it next week because the minimum salary has not been increased since 2011 and thus we have violated the law. The Economic Commission has drafted a modality and we will inform you on whatever you need.
Lindita Daija (NCEI Secretariat): We will conclude with Mr. Milazim Abazi from American Chamber and Mr. Vadim Deleu. I will give the floor to Mr. Vadim Deleu!
Vadim Deleu (Representative of the European Commission Office in Kosovo): Good afternoon all, representatives of institutions, business organizations of Kosovo. I will give a brief comment from our side. We welcome the organization of regular meetings between Business Associations and institutions of Kosovo. Increase of the public-private dialogue through NCEI has been one of the recommendations mentioned in the Kosovo Report published last month as to the development of industrial and SME policy in Kosovo. As you are aware, work is being done to implement the concrete measures and conclusions deriving from the Association Agreement reached between Kosovo and European Union and also from the assessment of the economic reform project. In this regard, I try to bring the fact that last week we had a virtual meeting with the representatives of European Commission, in order to make a preliminary assessment of the project for economic reforms, which issues are more or less related to the substance of discussions related to the framework of socio-economic recovery in Kosovo. I surely am aware of the great support of EU for socio-economic recovery of Kosovo through loans and grants in the amount of EUR 170 million. I would not elaborate it now, but there are some special measures for supporting the private sector (businesses). In this regard, it is important to state that currently, in cooperation with OPM colleagues, the Department of Development Assistance, Mr. Canolli, who is particularly involved in discussions related to the exercise of IPA III program, I consider that it is important to keep in mind that we will welcome efforts for formulating those policies, as well as efforts for their implementation for socio-economic recovery are being made considering also various recommendations provided by EU Office in the recent weeks and months. We welcome fruitful discussions and cooperation in this regard.
Lindita Daija (NCEI Secretariat): Thank you very much Mr. Deleu for the support of European Commission to Kosovo during the pandemic. I would give the floor to my colleague, Mr. Dardane Peja from USAID, who is responsible for the economic portfolio.
Dardane Peja (USAID): I would like to explain about the Draft Law on Foreign Trade. It was said that USAID sponsors this Law. USAID does not sponsor this Law. However, through the activity to improve the economic governance we have reviewed this Draft Law and we have provided the specific recommendations for the law to comply with the principles of the World Trade Organization and legislation of the European Union and we hope that all these recommendations will be considered.
Lindita Daija (NCEI Secretariat): Thank you very much Dardane for this comment. I will give the floor to Mr. Milazim Abazi from the American Chamber.
Mr. Milazim Abazi (American Chamber of Commerce in Kosovo): Thank you! I will raise three legal initiatives to advance the legislation for capital market and is related to the drafting of: (1) Law on Investment Fund, (2) Law on Establishment of the Agency for Registration of Securities, and (3) Law on Securities. With the justification that in states where the economy of market with free competition is the basis for the economic functioning, the investment funds have a very important role in the development of capital market, mainly the mobilization of capital. During 13 years of being independent, the Republic of Kosovo has not advanced its legislation for the capital market, which would enable the establishment and functioning of investment funds, resulting thus in the enrichment of the institutional structure of the financial sector, as well as would increase competition in the financial sector. The current archaic legal framework of the Republic of Kosovo does not respond to the market needs, thus restricting the innovation in the market. States of the region of the Western Balkans have a solid legislation with regards to the investment funds, which has been developed as a response to the need for rapid capital market development, thus enabling the penetration in the market of financial intermediators. Agreement for Economic Normalization singed on 4 September 2020 in Washington (USA) created a new opportunity for funding the private sector from the United States International Development Finance Corporation. However, while the direct funding is possible only for projects with higher monetary value: funding of projects at lower rates would be easier through investment funds. Unable to establish and operationalize the investment funds in the Republic of Kosovo, the international and regional funds will benefit from this opportunity. Therefore, the National Economic and Investment Council, American Chamber of Commerce in Kosovo requests from the Government of Kosovo, namely Ministry of Finance, to initiate as soon as possible the development of the legislation for investment funds in the Republic of Kosovo; b) establishment, registration and activity of collective investment funds depositors; c) sale and marketing of collective investment funds established in the Republic of Kosovo or abroad; d) marketing and administration of collective investment enterprises abroad; e) Republic of Kosovo from investment funds established in the Republic of Kosovo. In addition to the (1) Law on Investment Funds, referring to the experience of other neighbour states, the Assembly of Kosovo would have to approve even (2) the Law on Establishment of the Agency for Registration of Securities and (3) Law on Securities.
Lindita Daija (NCEI Secretariat): Thank you Mr. Abazi for these comments! I believe that this is enough to conclude the today's discussions. I will give the floor to Prime Minister of Kosovo to conclude the meeting.
Avdullah Hoti (Prime Minister): Thank you very much Lindita. Allow me to thank all of you for comments on suggestions and discussions. We took maybe a little longer, but I consider this to be a fruitful meeting in terms of sharing information between government institutions and private sector. I would like to take the opportunity to seek your understanding for the delay of approval of the Law on Economic Recovery so far and thank all Chambers of Commerce and Associations for the public support provided to this Law, and seek your further support until the approval of the Law. Aware that the obligations rests with the government and parliament majority, we hope that in the coming days and weeks we will conclude this important issue and open the way for facilitating the economic activity throughout the 2021. Firstly, I request once again from ministers of relevant fields to provide, within a couple of days, the Chambers of Commerce and Associations with responses through Lindita for issues they have raised. For some of these questions ministers already responded verbally, but there are others as well. Therefore, I request from ministers to review the list of issues summarised by Lindita and her team and prepare written responses. I consider that this discussion should lead to agreement. Firstly, we should continue working together on measures related to the economic recovery for 2020 with the existing package. Issues related to the fund of 2 million for women and fund for communities will be concluded next week. Minister of Agriculture is today with us. We have allocated 12 million and we will allocate another 12 million, totalling to 24 million for agriculture. There is another instrument for 1600 individual businesses. For 2021, as part of the economic recovery, as already mentioned at the beginning of the meeting, the amount of 182 million euro has been foreseen in the budget. I consider that this will be fully supported by members of parliament, maybe even to increase this fund, but at least there will be EUR 182 million. I invite all of you to work together during December in order to design the measures and maybe during the next meeting of this Council we approve those measures, for the manner of distributing this fund of 182 million in the first quarter of the coming year, as during this period will be characterized with higher intensity of the pandemic and economic-social effects, and therefore we should support businesses. This is the first conclusion: recovery package for this and the coming year. Secondly, I suggest initiating preparations by supporting Lindita in our communication for a new fiscal package during December and set the approval of this new fiscal package in the first or second meeting of the Government as our objective. What is this new fiscal package? This new fiscal package will address all issues raised by Chambers of Commerce so far, summarized by the Council Secretariat. Issues raised by the Chambers requiring the amendment of the various regulations and instructions of the relevant ministries or agencies, or executive decisions of the ministers, agencies or government, should be immediately addressed and then consider long-term cooperation about which laws should be amended. However, I insist that we should work for preparing this new fiscal package and prepare it during the December and approve it immediately in the beginning of the coming year, i.e. first meeting of the Government. I will conclude my speech with these two conclusions. Thank you all for your presence and discussions in this meeting of the Council! Lindita!
Lindita Daija (NCEI Secretariat): Thank you Prime Minister for these comments. I consider that these are sufficient until the next meeting! As you instructed, we will continue working in the two points mentioned and inform all Chambers for the remaining points, which expressed in percentage are 15% of points not covered by ministers; however, we will forward them via email! Thank you one again for your understanding to postpone the date and your input to this genuine dialogue!