Kosovo secures extra 26 mln euro from IMF

The newly approved funding will be added to the existing 178 million euro support that the IMF decided to make available under the SBA and RSF last year in May.

“Program performance under both arrangements remains strong. All quantitative targets have been met, and all structural benchmarks and reform measures for the second reviews have been implemented,” IMF Deputy Managing Director Bo Li was quoted as saying in a press release on Monday.

An additional 16.5 million euro will be made available under the existing 24-month precautionary SBA of about 100 million euro. An extra 9.5 million euro will be allocated to the RSF, originally amounting to 78 million euro. The RSF seeks to provide accessible funding to advance Kosovo's climate initiatives, particularly in energy efficiency and sustainable electricity.

Despite a challenging environment, Kosovo’s economy grew 3.3% in 2023, while annual inflation slowed to 2% in the first quarter of 2024. Fiscal policies remained prudent.

The IMF expects Kosovo’s economy to advance 3.8% in 2024, maintaining its April forecast. Inflation is projected to decelerate to 2.9% in 2024 from 4.9% in 2023, the IMF said.

The country’s budget deficit is projected to widen to about 1.5% of 2024 GDP, as grants decline and expenditures increase.

($=0.920 euro)