IMF and Kosovo Gov’t prepare economic capacity building program

IMF Senior Advisor for Europe, Adam Bennett, confirms to Kosovar daily “Gazeta Express” that the Government of Kosovo with the IMF is preparing a special program of cooperation for economic capacity building in Kosovo

Kosovo will benefit from a special program of the International Monetary Fund for financing various projects, which this institution will establish together with the Government of the Republic Kosovo in the following days.

In the foreground will be the sustainability of the Kosovo budget and budgetary financing gaps for establishing economic and poverty reduction.

IMF Senior Advisor for Europe, Adam Bennett, confirms the Kosovar daily newspaper Gazeta Express that talks are underway between both parties to find a better solution to help economic capacity building in Kosovo.

He says that next year may begin to initially implement a program of twelve month period, while the government improves macroeconomic policies and to initiate other reforms in the country’s economy.

According to his latest recommendations of the IMF for the 2010 budget should be taken seriously, so that Kosovo be prepared to enter into arrangements pending process “stand by arrangement”.

“The Republic of Kosovo is the youngest member of the IMF and all other members, has the right to apply to the Fund’s programs, if they wish. I think the government is seeking a construction program for the country “, states Bennett.

While the IMF does not directly fund projects, but instead gives guarantee to the states who apply to receive a certain amount of money which may be just as huge as that on and which you can use for budget needs, IMF official says says that this program will be more specific.

With the new role that the IMF has been assigned to assist states affected by the global financial crisis, Kosovo would also have the same benifit. In some way Bennett says he will close their eyes in some cases when government is unable to meet the requirements of the Fund.

“There is a lot of talk the IMF has become more flexible than has been previously. I am sure of this flexibility will be applied for Kosovo as well, “said Bennet.

The biggest concern of this institution, according to him, remains the risk of a sudden costs of poorly planned. At this point he says there should be no concessions, because this budget also depends on economic stability of the country, which comparing to other Balkan states, he says it is for any praise.

“Kosovo is lucky to be concluded in the economic growth of 3.5 percent, while other countries in the region are operating at a loss”, he indicated.

Meanwhile, the shrinking of lending by banks, falling of remittances and lack of investment, Bennett estimates that are common to every country in time of crisis now. But, says it is important that the balance of loans is good in Kosovo, since not only in Eastern Europe, but also in other countries of the world are facing credit problems.

However, he consistently says Kosovo will have the support of this institution. So far, he has said that IMF has helped Kosovo with technical assistance, which will continue further.

In comparison with Bosnia, which takes as the nearest example of countries in the region, IMF official says that Kosovo is way more economically stable.

New Kosova Report