15 minutes agoIMF Delegation Council Government: Don't make up for teachers of the 90s
Periskopi(8 years ago)
(8 years ago)An International Monetary Fund mission has completed its visit to Pristina, held on May 30th, June 5th. Focusing on the agenda were recent economic developments and Kosovo's economic perspective. The IMF expects growth this year to be at 4% level, while praising the banking sector as well-capitalised, liquid and [...]
The IMF expects growth this year to be at the 4% level, while praising the banking sector as well-capitalised, liquid and profitable.
Although the short-term outlook remains positive, the mission argues fiscal risks have increased.
“Mission cautioned not to press ahead with the current teacher compensation bill, due to large direct and indirect fiscal costs, which would burden the budget for many years and replace other priority expenditures”, the IMF statement said.
As for reforms for war veterans, The IMF says they should advance, but in the meantime, new programmes with social benefits should not be presented. The Kosovo government should also be careful with public sector restructuring, to downplay the risks. The mission recommended that reforms in public administration be drafted on the basis of the wage restrictions law.
As for the private sector, structural support reforms must be accelerated to achieve stronger and sustainable economic growth, reduce wage gap with the rest of Europe, and address high unemployment.
