Pristina, Kosovo, September 26, 2018—IFC,
a member of the World Bank Group, and the Ministry of Trade and Industry
of the Republic of Kosovo are working together to improve local bankruptcy
procedures. The effort is designed to support the development Kosovo’s
private sector and stimulate economic growth across the country.
IFC will advise the Government of Kosovo as it updates its insolvency regulations.
The new rules will be designed to help troubled businesses get back on
their feet while allowing failed businesses to be wound up efficiently,
releasing valuable capital back into the economy. The initiative, formally
known as the Debt Resolution Project, will create a safety net for businesses
and investors, which is expected to foster access to much-needed credit.
“We will work with IFC to enable the smooth liquidation of non-efficient
companies and allow the return of their assets back into productive use,”
said Arbėresha Krasniqi, Kosovo’s Acting Minister of Trade and Industry.
“It is important to further reduce the levels of non-performing loans
in Kosovo through an efficient restructuring process or out-of-court workout
While Kosovo has made significant progress in becoming a market economy,
there is still a large regulatory gap that makes doing business a challenge.
Improvements in bankruptcy and insolvency procedures are seen as critical
to jump-starting investments and making capital available for businesses
large and small.
“Our goal is to nudge insolvency mechanisms into practice in Kosovo, but
also to promote out-of-court workouts and expedited restructuring procedures,”
said Damien Shiels, Practice Manager of Finance, Competitiveness, and Innovation
at the World Bank Group. “This will help spur the development of Kosovo’s
private sector, which is an important source of jobs and innovation.”
The project will be implemented in partnership with the government of Switzerland,
represented by the Swiss State Secretariat for Economic Affairs (SECO).
“We expect that at the end of this
program, we will have an improved business environment in Kosovo, better
legal and regulatory insolvency frameworks, that will lead to stronger
financial and private sectors,” said Patrick Etienne, Country Director
for Swiss Cooperation Office in Kosovo.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In fiscal year 2018, we delivered more
than $23 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org
The State Secretariat for Economic Affairs (SECO) is the Swiss Confederation’s
competence center for all issues related to economic policy, including
economic development and cooperation. SECO has supported and funded economic
development programs and projects in Kosovo since 1998. For more information
please visit: www.fdfa.admin.ch/countries/kosovo/en/home.html
For information about SECO in Kosovo, visit: www.fdfa.admin.ch/countries/kosovo/en/home.html
For information about the Kosovo Ministry of Trade and Industry, visit:
For information about the Swiss Embassy in Kosovo, visit: www.eda.admin.ch/pristina