Serbia to Continue Repaying Kosovo Debt

The Minister of Finance Mirko Cvetkovic informed that the Serbian budget for 2008 has allocated funds for repayment of Kosovo’s debt and said that Serbia shall continue settling the obligations. Kosovo is a part of Serbia and we will not recognize illegal Kosovo independence, and will consequently keep on repaying the debt, he said.
The Minister of Finance Mirko Cvetkovic informed that the Serbian budget for 2008 has allocated funds for repayment of Kosovo’s debt and said that Serbia shall continue settling the obligations. Kosovo is a part of Serbia and we will not recognize illegal Kosovo independence, and will consequently keep on repaying the debt, he said.

 

Kosovo’s debt exceeds one billion dollars. Overall liabilities that are due this year total 91 million dollars – US$40 million should be repaid in March, and the remaining US$50 million in several installments, starting from April. The liabilities are owed to different creditors, the Paris and London Clubs and the World Bank. Serbia has repaid US$328.4 million dollars since 2002.  

 

The Minister said it was too early to talk about budget revision, as Serbia is now regularly executing appropriations related with Kosovo. The unilateral declaration of Kosovo independence cannot change the budget, but consequences of that act may demand budget revision and additional funding.

 

Mr. Cvetkovic added that the Ministry of Finance is considering whether to reallocate within the planned expenditure the funds needed for the Ministries that are related directly with activities in Kosovo (Ministry for Kosovo and Metohija, Health, Education and Infrastructure Ministries).