2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Kosovo


2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Kosovo

Fund Relations

(As of July 31, 2020)

Membership Status:

Joined: June 29, 2009; Article XIV.

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Latest Financial Arrangements: Arrangements:

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Outright Loans:

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Overdue Obligations and Projected Payments to Fund 2

(SDR Million; based on existing use of resources and present holdings of SDRs):

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Implementation of HIPC Initiative: Not Applicable

Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable

Implementation of Catastrophe Containment and Relief (CCR): Not Applicable

As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.

Safeguards Assessments

The update safeguards assessment, conducted in connection with the Rapid Financing Instrument approved in April 2020 [and a prospective Extended Fund Facility arrangement], found that the CBK continues to maintain broad operational controls and all recommendations from the previous safeguards assessment have been implemented. However, recent Board vacancies have resulted in the lack of a quorum and the absence of a functioning Board poses substantial governance and oversight risks for the central bank. The CBK Act protects the autonomy of the central bank, and the audit mechanisms and financial reporting practices continue to be aligned with international standards. The implementation of the risk management framework is advancing.

Exchange Arrangements

The de jure and de facto exchange rate arrangement is one of no separate legal tender. Since unilateral adoption of the euro, this currency is a legal tender in Kosovo and circulates freely. Kosovo is not part of the euro area and the CBK is not part of the European System of Central Banks. Kosovo is an Article VIII member and does not maintain exchange restrictions or multiple currency practices, except for restrictions maintained solely for reasons of international or national security, which have been notified to the Fund pursuant to Decision No. 144.

Previous Article IV Consultation

The last Article IV consultation was concluded on October 8th, 2020. Going forward, it is expected that Kosovo will be on a 12-month cycle.

FSAP and ROSC Participation

An FSAP mission was conducted during September 19–October 2, 2012. The FSSA included the ROSC for compliance with Basel Core Principles. Kosovo has not had a data or a fiscal transparency ROSC.

Technical Assistance

Since 1999, the Fund has provided technical assistance and policy advice to UNMIK and, since September 2008, to Kosovo. Technical assistance has centered on the Fund’s core competencies, notably in the areas of fiscal policy, the banking and payments systems, and macroeconomic statistics. Assistance has also contributed to developing key aspects of the legal and institutional framework needed for a market economy. More recently, TA has been provided on the following issues:


  • Government Finance Statistics (November 2018; March, June and October 2019; February 2020)

  • Monetary and Financial Statistics (August 2019)

Fiscal Sector

  • Tax Administration – Compliance Risk Management (November 2018); Review Process of Tax Administration Reform (March 2019); Tax Administration Modernization (January 2020); Tax Debt Collection (May 2020); IT Reform Implementation (September 2020)

  • Public Financial Management – Medium-term expenditure framework and Fiscal Management (February 2019; September 2020); Budget Costing and Fiscal Risk Management (November 2019); Fiscal Risk Disclosure (October 2020);

Monetary and Financial Sectors

  • Financial Sector Stability Review (January, April and October 2019; July 2020)

Resident Representative

Ms. Eble from regional office for the West Balkans took up her post on June 14, 2019 and oversees Kosovo’s local office.

Statistical Issues

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Kosovo—Table of Common Indicators Required for Surveillance

(As of January 21, 2021)

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CBK’s NFA and GIR data have been revised for the period 09/2015 – 07/2018 to exclude the CBK’s holdings of Kosovar government securities. CBK balance sheet and survey data have been revised for the period 09/2015 – 07/2018 to reclassify the CBK’s holdings of Kosovar government securities as claims on the central government.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary and extra budgetary funds) and local governments (municipalities).

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Daily (D), weekly (W), monthly (M), quarterly (Q), annually (A), irregular (I), and not available (NA).

GNDI data not available.


Emergency Assistance may include ENDA, EPCA, and RFI.


When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.