EBRD plans technical help for possible Kosovo Telekom's restructuring
The European Bank for Development and Reconstruction (EBRD) said it is planning to provide some initial technical assistance on possible restructuring of state-owned Kosovo Telekom ahead of its potential privatisation.
“EBRD was requested to provide support to the Ministry of Economic Development of Kosovo, in particular with a privatisation roadmap for Kosovo Telekom,” EBRD said in an statement.
Kosovo's economy minister Valdrin Lluka said earlier this week the restructuring process will receive the EBRD's support, so that workers and trade unions feel represented in decision-making.
Lluka also said he held a meeting with Lami Balaj, head of the trade union at Telekom, which focused on concerns and plans for 2019 and the dividing of the restructuring process in four phases, Lluka said in a press release.
Kosovo Telekom, which has been in a deep financial and operational crisis since 2015, will undergo a restructuring process during 2019 in order to increase the value of the company before offering it for privatisation, Lluka explained.
At least four companies from the US and EU countries have expressed interest in acquiring partial or total ownership of Kosovo Telekom, the economy minister noted.
Over the last three years, the financial losses of Kosovo Telekom vary from 8 million euro to 52 million euro ($60 million) per year, seriously jeopardizing its liquidity despite the measures for a turnaround taken by its management, Lluka said.