The Government of Kosovo has allocated over one million euros for the metallurgical plant Trepça, as a solution to overcome the financial problems in which this company is currently going through.
This is what the Prime Minister of Kosovo, Avdullah Hoti, said after a meeting he had with the Minister of Economy and Environment, Blerim Kuçi and the members of the temporary board of "Trepça".
Trepça's accounts were blocked last week due to accumulated debts.
Prime Minister Hoti said that the value of the total debt of this company amounts to about 8 million euros.
"The situation in the company is very difficult. But, it is difficult largely due to the situation in which we are going through the pandemic globally and the inability of ‘Trepça’ to sell its products in world markets. But, partly we have to accept the fact that also due to the inadequate management in the management of this company", said Hoti.
The Government of Kosovo considers that "Trepça" has inherited unfavorable contracts, which are causing financial damage.
This enterprise, which was considered as one of the largest enterprises not only in Kosovo but also a former Yugoslavia, has never since the post-war period been able to be put in the function of the economic development of the country.
Currently, "Trepça" deals with the extraction and processing of minerals, mainly lead and zinc, and is the only producer of this type in Kosovo.
However, the production is very low, only about 150 thousand tons of ore per year, while in the period before 1999, the mine produced about 600 thousand tons of ore per year.
During this year, the chief executive of "Trepça", Hysen Vrajolli, said that there was an increase in production by about 30 percent compared to last year, but the fall in prices on stock exchanges and international markets has left this company with negative business.