Kosovo to Get $53 Million IMF Loan as Economy Avoids Turbulence

Kosovo is set to get a second loan from the International Monetary Fund this year amounting to 41 million euros ($53 million) as the Balkan nation economy avoids the financial turbulence gripping most of Europe.

The IMF is set to approve the loan in December after disbursing a 48 million-euro package in July, the Washington- based lender said in a report today. Total budget receipts composed of revenue and financing exceeded projections, the IMF said as the government also met the goal of starting the sale of telecommunications company Posta dhe Telekomunikacioni i Kosoves Sh.A.

“Kosovo’s economy has continued to display considerable resilience in the face of external financial turbulence,” Johaness Wiegand said in the report. “Robust current and capital inflows, notably from the Kosovar diaspora, have continued to support activity.”

Kosovo’s economy is driven by investments and cash sent from its residents living in Europe. Gross domestic product is forecast to expand 3 percent this year and in 2013, higher than in most neighboring countries, the IMF said today.

The predominantly Albanian-populated Balkan nation that declared independence from Serbia in 2008 wants to normalize relations with its former ruler as both countries seek closer ties with the European Union.

To contact the reporter on this story: Boris Cerni in Ljubljana at bcerni@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net