The State Aid Commission (SAC) has announced that the Government of Avdullah Hoti, specifically the Ministry of Finance, have allocated a large amount of money to help businesses, illegally.
This institution estimates that the allocation of these funds was made by the incumbent government without notifying the mandated authorities at all to ascertain compliance with state aid rules.
Therefore, on Friday, the commission authorized the investigation of the state aid measure – “Facilitation of access to finance for businesses – by the Ministry of Finance, within the economic recovery package.”
“The Commission, based on publicly available information, has concluded that the measure in question, part of the economic recovery package Law 07 / L-016, constitutes state aid in the sense of the Law on State Aid (LNSH) no. 05 / L-100 and that the same in the procedure was given in contradiction with the LNSH (Article 11 (1)) as it was not notified to the mandated authorities to ascertain the compliance with the rules of state aid – before it is implemented ”, it is stated in the notification of KNSH ..
This institution has given the Ministry of Finance a deadline of 15 days to submit all data. The Ministry of Finance has started to implement this measure through the Kosovo Credit Guarantee Fund (KCGF), increasing the latter’s assets by 65mil Euro in order to create the possibility of increasing the amount of guarantee for loans that Kosovar businesses will receive in commercial banks by the end of 2021.
“This facilitation of access to finance (through the guarantee instrument) is done in order to assist businesses in some sectors in the process of their economic recovery as a result of the contraction of their economic activity during the pandemic”, it is said in the announcement of SNC. / Gazeta inFokus /