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Kosovo: Second Review Under the Stand-By Arrangement, Request for Rephasing of Purchases and Modification of a Performance Criterion

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  • International Monetary Fund

Abstract

Kosovo’s economy is slowing, although it continues to display resilience overall. The banking sector remains well capitalized, liquid, and profitable, notwithstanding a recent increase in nonperforming loans. The main downside risk to the outlook remains a possible deterioration in labor market conditions. To safeguard primary fiscal balance target by year-end, the authorities have pre-identified spending cuts. The authorities are pursuing further initiatives to strengthen competitiveness, attract investment from abroad, and promote the development of a tradable sector.

Suggested Citation

  • International Monetary Fund, 2012. "Kosovo: Second Review Under the Stand-By Arrangement, Request for Rephasing of Purchases and Modification of a Performance Criterion," IMF Staff Country Reports 2012/345, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2012/345
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