The World Bank's Board of Executive Directors has approved financial support for two projects in Kosovo, aimed at enhancing the competitiveness of the private sector and improving connectivity. The Financial Sector Development Project and Trade and Transport Facilitation Project (TTFP) 2.0 are being funded through concessional credit from the International Development Association (IDA), with a combined value of nearly $90 million.
Massimiliano Paolucci, World Bank Country Manager for Kosovo and North Macedonia, commented on the initiative: "Through these two projects, Kosovo demonstrates its commitment to enhancing competitiveness by supporting smaller firms that are essential to the economy." He emphasized that "focusing on improving access to finance for firms and facilitating connectivity is a key factor for growth and job creation, and it will bring clear benefits to Kosovo and its citizens."
The Financial Sector Development Project aims to improve financial stability in Kosovo by strengthening the capacity of the Deposit Insurance Fund of Kosovo. This includes financing underserved firms and promoting faster payment systems. The project also supports micro, small, and medium enterprises by allocating capital for credit guarantees through the Kosovo Credit Guarantee Fund. Additionally, it assists in establishing a National Development Bank to finance development projects aligned with government priorities.
Meanwhile, TTFP 2.0 builds on previous efforts to reduce trade costs and enhance transport efficiency in the Western Balkans. It will fund infrastructure improvements such as e-tolling systems on major roadways like Route 6, Route 7, and the Gjilan Motorway. The project also aims to improve safety across railways and high-risk road sections.