The International Monetary Fund (IMF) has reached a staff-level agreement on the fourth and final reviews of Kosovo's Stand-By Arrangement (SBA) and Resilience and Sustainability Facility (RSF) Arrangement. An IMF mission, led by David Amaglobeli, visited Pristina from March 12 to 21 to conduct discussions on these arrangements.
According to Mr. Amaglobeli, "The authorities have maintained strong performance under the SBA and RSF. All end-December quantitative and indicative targets for the Fourth Reviews have been met, and all end-March ITs are on track to be met." He noted that structural reforms have been advanced by strengthening liquidity forecasting capacity at the Ministry of Finance and modernizing financial sector supervision.
"The two-year IMF-supported programs have yielded significant results," Mr. Amaglobeli stated. He highlighted that macroeconomic fundamentals have improved with sustained growth despite external challenges, reduced inflation after a post-pandemic surge, and enhanced formal sector employment. Growth in 2024 was recorded at 4.4 percent, driven by private consumption and investment.
Fiscal policy has been prudent, maintaining low deficits and debt levels while keeping fiscal buffers strong. Public debt fell below 17 percent of GDP in 2024—the lowest since 2017—while treasury deposits increased significantly. Fiscal reforms bolstered revenue collection with the tax-to-GDP ratio reaching its highest level ever at 26½ percent in 2024.
Looking forward, authorities are encouraged to continue implementing prudent fiscal policies within a rules-based framework to ensure sustainable outcomes. Revenue administration reforms will create necessary fiscal space for social and capital investments.
The Central Bank of Kosovo (CBK) has made progress in advancing financial sector reforms aimed at enhancing stability and modernization. The CBK is undergoing an IMF-led Central Bank Transparency Code assessment and a governance audit by a peer central bank.
These efforts have supported rapid expansion of the financial sector with private sector credit growing significantly in real terms in 2024. Financial inclusion also improved with increased ownership of bank or e-money accounts.
The mission engaged with key officials including Deputy Prime Minister Bislimi, Minister of Finance Murati, Minister of Economy Rizvanolli, Central Bank Governor Ismaili, among others from civil society, private sector, and international partners.