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.