IMF: Lack of political consensus in Kosovo unable to deal with COVID-19

The International Monetary Fund has found that Kosovo's economy has been hit hard by the pandemic, and despite fiscal and financial policies for easing the impact of shock on households and firms, the lack of political consensus so far has proved a stronger response to the situation.

During a virtual meeting with Finance Minister Hykmete Bajrami, IMF official Gabriel Di Bella has called it important for Kosovo to continue to ease losses caused by households and firms through well-designed and transparent measures.

He has also demanded that financial policies ease the impact on revenues without endangering the stability of the banking sector, and continue to address structural challenges related to increasing productivity in the economy.

The apparent mid-July-August infection “forced Kosovo Government to slow down and restore partial closing measures, slowing the return of the economy to the preliminary situation. The short-term policies should ensure that the health system can effectively afford extremely high demand for” services, the IMF is potential.

While Finance Minister Hykmete Bajrami stressed that fiscal rules designed in co-operation with the IMF have helped preserve macro-fiscal stability even during the difficult period with the pandemic.

In this context, she pointed out that they are committed to providing the means needed to cope with pandemic, as well as to support society's most sensitive groups, including the private sector in order to preserve jobs.

Likewise, Bajrami expressed commitment to drafting a medium-term plan for gradual restitution of legally defined fiscal rules, during the period of economic recovery as the key priority of the Government of Kosovo.