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Republika e Kosovës Republika Kosova - Republic of Kosovo

Qeveria - Vlada - Government Ministria e Financave

Ministarstvo za Finansije – Ministry of Finance Thesari i Kosovës - Trezor Kosova - Treasury of Kosova

QUARTERLY DATA ON TOTAL DEBT

Second Quarter 2020

Debt Management Division

July 2020

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CONTENT

ABBREVIATIONS ................................................................................................................................... 3

INTRODUCTION ................................................................................................................................... 4

1. TOTAL DEBT .................................................................................................................................. 5

Total Debt Stock ...................................................................................................................................... 5

Total Debt trend ...................................................................................................................................... 5

Debt portfolio by currency ..................................................................................................................... 6

Debt portfolio by interest ....................................................................................................................... 6

Debt portfolio by currency and interest type in Q2 2020 ..................................................................... 7

2. INTERNATIONAL DEBT .............................................................................................................. 8

International Debt Stock ......................................................................................................................... 8

International Debt by creditors .............................................................................................................. 8

Composition of International Debt by creditor in Q2 2020.................................................................. 9

Withdrawals by creditors ....................................................................................................................... 9

International Debt Service by creditors ................................................................................................10

Composition of International Debt by currency and interest in Q2 2020 ..........................................10

International Loan Agreements in Q2 2020 .........................................................................................11

International debt stock and committed undisbursed debt ...............................................................11

3. DOMESTIC DEBT ..........................................................................................................................12

Domestic Debt Stock ..............................................................................................................................12

Government Securities Issued in Q2 2020 ............................................................................................12

Domestic Debt by instruments..............................................................................................................12

Domestic Debt by GS holders in Q2 2020 ............................................................................................13

Domestic Debt Service ...........................................................................................................................13

4. STATE GUARANTEES ..................................................................................................................13

5. RISK INDICATORS .......................................................................................................................14

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ABBREVIATIONS

IDA

EBRD

IsDB

IBRD

GDP

CBK

EIB

IMF

OFID

International Development Association

European Bank for Reconstruction and Development

Islamic Development Bank

International Bank for Reconstruction and Development

Gross Domestic Product

Central Bank of Kosovo

European Investment Bank

International Monetary Fund

OPEC Fund for International Development

DIFK

SFD

KfW

Deposit Insurance Fund of Kosovo

Saudi Fund for Development

German Bank for Reconstruction and Development

GS

MF

MH

MLSW

NATIXIS

Government Securities of the Republic of Kosovo

Ministry of Finance

Ministry of Health

Ministry of Labor and Social Welfare

French Republic Representative for investment

Imp. BO Project Implementing Budget Organization

SAR

SDR

RBI

R

Saudi Riyals

Special Drawing Rights

Raiffeisen Bank International AG in Austria

Revised Data

Q Quarter

RBI Raiffeisen Bank International AG në Austri

UniCredit UniCredit Bank in Austria

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INTRODUCTION

Pursuant to the Law on Public Debt no. 03/L-175 and Regulation GRK - no. 22/2013 on

Procedures for Issuance and Management of State Debt, State Guarantees and Municipal

Debt, and for the best practices the Treasury publishes in the Ministry’s webpage the

report Quarterly Data on Total Debt, with the main public debt indicators. The Law on

Public Debt defines the Total Debt as the sum of State Debt and Municipal Debt. State Debt

can be direct debt or on-lend debt1. Whereas regarding the jurisdiction to which it is

subject to, Total Debt is divided into International Debt and Domestic Debt- where

Domestic Debt is subject to the local jurisdiction, and International Debt is subject to the

laws of a legal jurisdiction other than the Republic of Kosovo.

The report consists of five parts, in the first section showing the data for the General Debt,

in the second part the data on International Debt, in the third part the data on Domestic

Debt, the fourth section presents the data for State guarantees, and the last part represents

the risk indicators for the General Debt.

For debt denominated in currencies other than Euro, the foreign exchange rate in use is the

one from June 30, 20202. The values shown in the following tables are in millions of Euro,

unless otherwise stated in this document.

1 Debt which is contracted by Government, but with a special three-parties agreement can be on-lent to a public sector entity. 2 imf.org: 1SDR=1.2285 Euro; (dt. 30.06.2020) xe.com: 1USD=0.8901 Euro; 1SAR=0.2373 Euro (dt. 30.06.2020)

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1. TOTAL DEBT

Total Debt Stock

2015 2016 2017 2018 2019 (R) Q1 2020 Q2 2020

International Debt 371.17 373.77 422.15 416.43 409.10 399.31 429.61

Central Level 339.87 323.93 365.18 364.53 359.45 349.83 382.69

On-Lending 31.30 49.83 56.97 51.90 49.65 49.47 46.92

Municipalities 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Domestic Debt 377.78 478.97 574.27 676.62 791.94 791.98 884.51

Central Level 377.78 478.97 574.27 676.62 791.94 791.98 884.51

Municipalities 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Debt 748.95 852.74 996.42 1,093.05 1,201.05 1,191.28 1,314.12

State Guarantees (R) 10.00 20.00 44.00 43.70 42.68 42.17 42.17

Total Debt (% of GDP) (R)

13.07 14.38 16.22 16.90 17.46 16.53 18.17

Notes: International Debt also changes over the years and quarters as a result of exchange rate fluctuations. The GDP values for 2015-2018 are taken from the website of the Kosovo Agency of Statistics, for 2019 and 2020 the GDP values are taken from the Budget Law for the respective year.

Total Debt trend

13.07%14.38%

16.22%16.90% 17.46%

16.53%

18.17%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

2015 2016 2017 2018 2019 Q1 2020 Q2 2020

(% O

F G

DP

)

Mili

on

Euro

Total Debt Total Debt (% of GDP)

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Debt portfolio by currency

2015 2016 2017 2018 2019 (R) Q1 2020 Q2 2020

Total Debt 748.95 852.74 996.42 1,093.05 1,201.05 1,191.28 1,314.12

EUR 650.92 758.85 856.91 948.33 1,068.73 1,064.00 1,166.77

SDR* 98.03 93.89 139.51 144.46 128.99 125.26 145.34

SAR 0.00 0.00 0.00 0.25 2.08 1.36 1.37

USD 0.00 0.00 0.00 0.00 1.24 0.66 0.65

International Debt 371.17 373.77 422.15 416.43 409.10 399.31 429.61

EUR 273.14 279.88 282.64 271.71 276.79 272.03 282.25

SDR* 98.03 93.89 139.51 144.46 128.99 125.26 145.34

SAR 0.00 0.00 0.00 0.25 2.08 1.36 1.37

USD 0.00 0.00 0.00 0.00 1.24 0.66 0.65

Domestic Debt 377.78 478.97 574.27 676.62 791.94 791.98 884.51

EUR 377.78 478.97 574.27 676.62 791.94 791.98 884.51 *The position of the SDR3 represents the net value exposed, which means the amount exposed excluding Euro component.

Debt portfolio by interest

2015 2016 2017 2018 2019 (R) Q1 2020 Q2 2020

Total Debt 748.95 852.74 996.42 1,093.05 1,201.05 1,191.28 1,314.12

Fix 621.21 738.78 835.65 932.91 1,055.51 1,053.33 1,147.88

Variable 127.74 113.96 160.77 160.14 145.54 137.95 166.25

International Debt 371.17 373.77 422.15 416.43 409.10 399.31 429.61

Fix 243.43 259.81 261.38 256.29 263.57 261.35 263.36

Variable 127.74 113.96 160.77 160.14 145.54 137.95 166.25

Domestic Debt 377.78 478.97 574.27 676.62 791.94 791.98 884.51

Fix 377.78 478.97 574.27 676.62 791.94 791.98 884.51

3 SDR is a “basket” of currencies which consists of the following currencies: EUR, USD, GBP, JPY and CNY. The value of SDR is determined on the basis of an average which is drawn from the currency values mentioned above. This basket is reviewed every five years by the IMF Executive Board. With the review in November 2015, the Board decided to include Chinese renminbi as the fifth basket currency on October 1, 2016.

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Debt portfolio by currency and interest type in Q2 2020

EUR89%

SDR11%

SAR0%

USD0%

Fix87%

Variable13%

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2. INTERNATIONAL DEBT

International Debt Stock

2015 2016 2017 2018 2019 (R) Q1 2020 Q2 2020

International Debt 371.17 373.77 422.15 416.43 409.10 399.31 429.61

Central Government

339.87 323.93 365.18 364.53 359.45 349.83 382.69

On-lent Debt 31.30 49.83 56.97 51.90 49.65 49.47 46.92

International Debt (% of GDP)

6.39% 6.16% 6.75% 6.27% 5.74% 5.35% 5.76%

Notes: International Debt also changes over the years and quarters as a result of exchange rate fluctuations. The GDP values for 2015-2018 are taken from the website of the Kosovo Agency of Statistics, for 2019 and 2020 the GDP values are taken from the Budget Law for the respective year.

International Debt by creditors

Creditor 2015 2016 2017 2018 2019 (R) Q1 2020 Q2 2020

IBRD 180.99 169.65 158.32 146.98 135.64 129.97 129.97

IDA 28.86 36.02 41.12 49.51 60.53 63.55 66.09

IMF 127.74 113.96 160.77 160.14 132.60 124.91 153.13

KfW 30.62 47.64 54.81 48.91 42.79 42.79 39.65

UniCredit 2.96 6.49 7.04 7.04 13.26 14.51 16.81

IsDB 0.00 0.00 0.10 3.32 8.83 8.85 8.92

SFD 0.00 0.00 0.00 0.25 2.08 1.36 1.37

OFID 0.00 0.00 0.00 0.00 1.24 0.66 0.65

EBRD 0.00 0.00 0.00 0.28 4.11 4.19 4.19

RBI Austria 0.00 0.00 0.00 0.00 1.03 1.51 1.83

EIB 0.00 0.00 0.00 0.00 7.00 7.00 7.00

Total 371.17 373.77 422.15 416.43 409.10 399.31 429.61

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Composition of International Debt by creditor in Q2 2020

Withdrawals by creditors

Creditor 2015 2016 2017 2018 2019 (R) Q1 2020 Q2 2020

IDA 6.53 7.01 7.95 7.49 10.88 2.71 3.98

IMF 35.64 35.62 100.38 0.00 0.00 0.00 51.96

UniCredit 0.96 3.54 0.55 0.00 6.39 1.25 2.39

KfW 22.49 22.47 13.40 0.45 0.16 0.00 0.00

IsDB 0.00 0.00 0.10 3.21 5.51 0.02 0.07

SFD 0.00 0.00 0.00 0.26 2.12 0.13 0.04

OFID 0.00 0.00 0.00 0.00 1.53 0.00 0.00

EBRD 0.00 0.00 0.00 0.28 4.02 0.29 0.00

RBI Austria 0.00 0.00 0.00 0.00 1.03 0.49 0.32

EIB 0.00 0.00 0.00 0.00 7.00 0.00 0.00

Total 65.62 68.64 122.38 11.69 38.95 4.90 58.76

IBRD30%

IMF36%

IDA15%

KfW9%

UniCredit4%

IsDB2%

SFD0%

OFID0%

EBRD1%

RBI Austria1%

EIB2%

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International Debt Service by creditors

Creditor Debt

Service 2015 2016 2017 2018 2019 (R) Q1 2020 Q2 2020

IBRD Principal 11.34 11.34 11.34 11.34 11.34 5.67 0.00

Interest 7.98 7.50 7.03 6.55 6.07 2.86 0.00

IDA Principal 0.00 0.00 0.00 0.05 0.73 0.14 0.64

Interest 0.19 0.26 0.34 0.44 0.62 0.06 0.33

IMF Principal 16.21 49.21 41.06 4.29 30.40 8.74 20.91

Interest 1.41 1.77 2.59 3.06 3.12 0.59 0.70

UniCredit Principal 0.00 0.00 0.00 0.00 0.18 0.00 0.09

Interest 0.02 0.08 0.07 0.08 0.32 0.04 0.04

KfW Principal 1.33 5.45 6.24 6.35 6.28 0.00 3.14

Interest 0.91 1.68 1.98 1.89 1.63 0.00 0.72

EBRD Principal 0.00 0.00 0.00 0.00 0.19 0.20 0.00

Interest 0.00 0.00 0.00 0.28 0.42 0.93 0.00

SFD Principal 0.00 0.00 0.00 0.00 0.55 0.90 0.00

Interest 0.00 0.00 0.00 0.00 0.00 0.03 0.00

OFID Principal 0.00 0.00 0.00 0.00 0.61 0.60 0.00

Interest 0.00 0.00 0.00 0.00 0.02 0.02 0.00

EIB Principal 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.04

RBI Austria Principal 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest 0.00 0.00 0.00 0.00 0.10 0.01 0.01

Total 39.38 77.29 70.63 34.32 62.58 20.79 26.61

Composition of International Debt by currency and interest in Q2 2020

SAR0%

SDR34%

EUR66%

USD0%

Fix61%

Variable39%

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International Loan Agreements in Q2 2020

Loan Name Creditor Imp. BO Direct

Loan/On-lent Loan

Agreem-ent Date

Agreem.Currency

Agreem. Amount

Status

Kosovo Emergency COVID-19 Project

IDA MH/

MLSW Direct Loan 29.06.20 EUR 46.00

Not ratified

Rapid Financing Instrument

IMF MF Direct Loan 10.04.20 SDR 41.30 Approved

Wastewater Treatment Plant in the Municipality of Gjilan

EIB Mun. of Gjilan

Direct Loan 03.06.20 EUR 11.00 Not

ratified

International debt stock and committed undisbursed debt

Creditor

Actual debt

Ratified (A)

Actual debt

disbursed (B)

Undisbu-rsed debt (C=A-B)

Outstan-ding debt (D=B-E)

Debt Repayme-

nt (E)

Undisbur-sed debt as % of

GDP

Disbursed outstandi-ng debt %

of GDP

IBRD 381.21 381.21 0.00 129.97 251.24 0.00 1.74

IDA 168.40 64.47 103.93 63.55 0.92 1.39 0.85

IMF 287.38 287.38 0.00 124.91 163.27 0.00 1.67

KfW 71.00 68.43 2.57 42.79 25.64 0.03 0.57

UniCredit 24.98 14.68 10.30 14.51 0.18 0.14 0.19

OFID, IsDB, SFD 48.07 13.53 34.54 10.86 2.66 0.46 0.15

EBRD 139.90 4.59 135.31 4.19 0.40 1.81 0.06

EIB 122.00 7.00 115.00 7.00 0.00 1.54 0.09

NATIXIS 66.00 0.00 66.00 0.00 0.00 0.88 0.00

RBI Austria 5.13 1.51 3.61 1.51 0.00 0.05 0.02

International Debt

1,364.08 900.64 463.44 429.61 469.08 6.21 5.76

Note: International Debt at the column 'D' changes also as a result of the fluctuation of foreign exchange rate in non-Euro denominated loans.

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3. DOMESTIC DEBT

Domestic Debt Stock

Domestic Debt (net) 2015 2016 2017 2018 2019 Q1 2020 Q2 2020

New Issuances 121.26 101.19 95.30 102.44 115.32 0.03 92.54

Debt Stock 377.78 478.97 574.27 676.62 791.94 791.98 884.51

Domestic Debt (% of GDP)

6.51% 7.89% 8.95% 10.19% 11.12% 10.61% 11.85%

Note: The GDP values for 2015-2018 were taken from the website of the Kosovo Agency of Statistics, for 2019 and 2020 the GDP values are taken from the Budget Law for the respective year.

Government Securities Issued in Q2 2020

Auction Instrument Auction

Date Maturity

Date

Weighted average yield

(%)

Coupon Rate (%)

Amount Issued

Nominal Net

KV003-20 3 years 14.04.20 15.04.23 1.04923% 1.00% 26.85 26.81

KVPP1-20 10 years 28.04.20 29.04.30 3.95000% 3.95% 50.00 50.00

KV004-20 2 years 29.04.20 30.04.22 1.13533% 1.10% 22.25 22.23

KV005-20 7 years* 08.05.20 12.05.27 3.14181% 3.10% 10.00 9.98

KV006-20 5 years 22.05.20 26.05.25 2.51730% 2.50% 23.27 23.25

KV007-20 3 years 09.06.20 10.06.23 1.78306% 1.70% 30.00 29.93 Notes: Rates are annually. *Settlement date 12.05.2020

Domestic Debt by instruments

Note: Securities - nominal value

-

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

2015 2016 2017 2018 2019 Q1 2020 Q2 2020

3 months 6 months 12 months 2 years 3 years 5 years 7 years 10 years

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Domestic Debt by GS holders in Q2 2020

Domestic Debt Service

Domestic Debt 2015 2016 2017 2018 2019 (R) Q1 2020 Q2 2020

Interest Payments 5.50 7.91 6.67 6.69 11.15 4.90 2.53

Principal Payments* 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest/Total Revenues (%)** 0.32 0.45 0.35 0.33 0.50 1.22 0.43 *Principal – Refinanced **Calculation of the annual indicators are based on the annual revenues while calculation of the quarterly indicators are based on the quarterly revenues

4. STATE GUARANTEES

2015 2016 2017

2018 (R)

2019 (R)

Q1 2020

Q1 2020

State Guarantees (R) 10.00 20.00 44.00 43.97 42.68 42.17 42.17

EBRD - Guarantee for Credit Line to DIFK

10.00 10.00 10.00 10.00 10.00 10.00 10.00

EBRD - Guarantee for Pristina Urban Transport

(R) 0.00 10.00 10.00 9.97 8.68 8.17 8.17

EBRD - Guarantee for Second Credit Line to DIFK

0.00 0.00 24.00 24.00 24.00 24.00 24.00

State Guarantees (% of GDP) (R) 0.17 0.33 0.70 0.65 0.60 0.56 0.56

Banks29%

Pension Funds44%

Public Instit.23%

Insurance Comp.Others

1%

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5. RISK INDICATORS

2015 2016 2017 2018 (R) 2019 (R) Q1 2020 Q2 2020

Total Debt/GDP % (R) 13.07 14.38 16.22 16.90 17.46 16.53 18.17

International Debt % 6.39 6.16 6.75 6.27 5.74 5.35 5.76

Domestic Debt % 6.51 7.89 8.95 10.19 11.12 10.61 11.85

Weighted Average Interest Rate %

2.58 2.09 1.88 2.09 2.16 2.10 2.19

International Debt % 2.97 2.96 2.84 2.96 2.70 2.46 2.35

Domestic Debt % 2.19 1.40 1.17 1.56 1.88 1.92 2.11

Average Time to Maturity for Total Debt

(years) 4.76 4.82 5.16 5.59 5.29 5.04 5.08

International Debt (years)

7.52 7.73 8.07 8.15 7.94 7.48 7.23

Domestic Debt (months)

11.73 15.46 20.18 27.33 29.37 29.68 36.02

Total Debt % 100.00 100.00 100.00 100.00 100.00 100.00 100.00

International Debt % 49.55 43.83 42.37 38.08 34.06 33.52 32.69

Domestic Debt % 50.44 56.17 57.63 61.92 65.94 66.48 67.31 Notes: Debt/GDP indicator also includes State Guarantees. The GDP values for 2015-2019 are taken from the website of the Kosovo Agency of Statistics, for 2019 and 2020 the GDP values are taken from the Budget Law for the respective year.