Kosovo loses 16m euros from IMF after failing to reach new agreement

The Republic of Kosovo will lose 16m euros in loans from the International Monetary Fund, as an economic agreement ends on August 4th with this Fond, government officials in Kosovo's outgoing announced.

Because of the failure to establish new institutions, authorities in Pristina have no chance to negotiate with the IMF for any new programme.

The Republic of Kosovo had reached an economic agreement with the International Monetary Fund in 2015, worth about 185m euros22 months long. The deadline for this agreement expires on August 4th of this year.

Agim Krasniqi, deputy minister of finance in Kosovo's outgoing government, told Radio Free Europe that this agreement Could not continue and negotiate the new programme, without forming the new government.

“About 16m euros cannot be taken credit. The IMF mission was due to come in June. But because of the elections it has not come. Without the fourth review of the deal, these loans” cannot be taken, Krasniqi said.

Krasniqi, meanwhile, says that Kosovo's refusal to accept IMF programmes loses the credibility of the Republic of Kosovo to other international financial institutions and international investors.

If you're not on a credibility-loss program, credibility in other investors as well. These are related issues. Because a state reports -- in this case, Kosovo's reports with the IMF -- are estimated to have credibility, even sustainability of public finances”.

Experts on economic issues in Kosovo, meanwhile, say the failure of the new agreement with the International Monetary Fund jeopardises realisation of money-money projects.

Arian Zeka, chief executive in the American Economic Ode, says this is also a signal to the need for the rapid formation of Kosovo's new institutions, released by the June 11th elections.

“If the agreement in question has preceded any financial grant or financial infusion for the state of Kosovo, then of course what can be jeopardised is the failure to establish any project whose financing is pre-represented by IMF”, Zeka told Radio Free Europe.

The recent Kosovo Government programme with the International Monetary Fund was to undertake reforms to improve the environment of doing business and strengthening its position.

Otherwise, agreements with the International Monetary Fund have helped Kosovo obtain loans under very convenient conditions, both from the World Bank and other international financial institutions, whose value has reached 400m euros.

Kosovo, in 2009, has joined the International Monetary Fund, and in June of this year, it has joined the World Bank.