IMF approves EUR 4.9mn loan tranche to Kosovo

By bne IntelliNews July 17, 2013

The IMF said its executive board has approved another tranche worth EUR 4.9mn to Kosovo after completing the fourth review of its 2012 stand-by arrangement with the country. Thus, the total resources already available to Kosovo under its EUR 105mn deal reached EUR 99.9mn, the Fund said in a statement on July 15.

The government, however, does not intend to withdraw these funds at this point and will rather treat them as precautionary in 2013.

Kosovo has previously indicated it will also not urge to use the tranche the IMF approved after its third review back in April. As a result, total disbursements so far amount to EUR 90.1mn - unchanged since the end of 2012 (when the IMF completed its second review under its SBA with Kosovo).

"The [Kosovo] authorities have restored a sustainable fiscal stance in the past two years. A rules-based fiscal framework will anchor fiscal policy from 2014. The framework needs to be complemented by sound fiscal practices, especially the careful preparation and costing of spending initiatives," deputy managing director and acting chair Ms. Nemat Shafik said after the IMF's executive board meeting.

The IMF approved the 20-month deal with Kosovo in April 2012. The programme's key goal is to support the government's fiscal policy and restore fiscal sustainability.

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