Kosovo Gets $53.9 Million From IMF After Review of Loan

The International Monetary Fund approved a second tranche for Kosovo from its stand-by arrangement after reviewing the loan program that may become precautionary next year.

The $53.9 million tranche brings the total disbursed to Kosovo to $120.9 million, as part of the 20-month, $140.57 million program, the lender said in a statement yesterday.

“Macroeconomic and financial policies are on track, notwithstanding a slowdown in economic growth that has complicated the meeting of fiscal targets,” according to the statement. Kosovo’s plan to treat the arrangement as precautionary in 2013, provided the return of the government’s bank balance to a fully adequate level, “is ensured. The 2013 budget brings Kosovo close to a fully sustainable fiscal stance.”

The economy of Kosovo, which declared independence from Serbia in 2008, is driven by remittances from its diaspora. Gross domestic product is forecast to expand 3 percent this year and in 2013, higher than in most neighboring states, the IMF said in October.

To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.