OP-ED

Kosovo: Towards higher, greener, more sustainable, growth

Last week, on November 15, the Executive Board of the International Monetary Fund (IMF) completed the first reviews of Kosovo's 24-month Stand-By Arrangement (SBA) and its Resilience and Sustainability Facility (RSF) Arrangement. In completing the reviews, IMF management noted Kosovo's solid growth despite global and regional headwinds, as well as the strong downward trend of inflation. IMF management also commended the very good performance under both programs. While this approval made available about €24.8 million under the SBA and around €38.4 million under the RSF arrangement, there is much more in these two programs than just financial support.

The SBA provides a safety net that helps mitigate risks of shocks—for example, higher commodity prices or changes in availability of financing. As Kosovo's program is fully financed and the country maintains robust reserve buffers, the SBA is precautionary, that is, its financing will not be used unless these risks materialize. However, the availability of the safety net provided by the SBA contributes to stabilize economic expectations, diminish uncertainty, and cushion against potential downturns. It's a key pillar supporting the authorities' efforts to ensure macroeconomic stability and a catalyst for policy enhancement and growth.