IMF recognizes Kosovo

Washington, July 15, 2008 – The International Monetary Fund said on Tuesday it recognized Kosovo’s secession from Serbia and would consider its application for IMF membership “in due course” as an independent state.

“On July 10, 2008, the International Monetary Fund (IMF) received an application for admission to membership in the IMF from the Republic of Kosovo. In the context of this application, it has been determined that Kosovo has seceded from Serbia as a new independent state and that Serbia is the continuing state. Accordingly, Serbia continues its membership in the International Monetary Fund (IMF) and retains all of its quota in the Fund, and all assets in, and liabilities to, the IMF” the institution said in its statement.

The move by the IMF is the first recognition by a premier international financial institution of Kosovo’s independence and is a critical step to attracting loans and investment to the country.

The IMF said under its rules, Kosovo’s membership application must first be investigated by the IMF’s Executive Board. After its investigation, the Executive Board submits a report to the Board of Governors of the IMF with recommendations in the form of a Membership Resolution. After the Board of Governors has adopted the Membership Resolution, the applicant country may become a member once it has taken the legal steps required under its law to enable it to sign the IMF’s Articles of Agreement and to fulfill the obligations of IMF membership.

The IMF currently has 185 member countries.

Kosovo declared its independence from Serbia in February and has been recognized by 43 Western states as an independent country so far.