Abstract
IMF Country Report No. 23/55
Copyright Page
IMF Country Report No. 23/55
REPUBLIC OF KOSOVO
SELECTED ISSUES
January 2023
This Selected Issues paper on Kosovo was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on December 20, 2022.
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Title page
REPUBLIC OF KOSOVO
SELECTED ISSUES
December 20, 2022
Approved By
Mark A Horton
Prepared By Gabriel Di Bella, Amanda Edwards, Si Guo, Sabiha Mohona, Ezgi Ozturk, and Selim Thaci.
Contents
KOSOVO’S ELECTRICITY SECTOR: CHALLENGES AND OPPORTUNITIES
A. Context: Higher Energy Prices Shock Kosovo’s Current Account
B. Kosovo’s Electricity Supply Chain and Load: Coal-Based Supply and Highly Seasonal Demand
C. The ESC’s Financial Flows: Choke Points, Load Shedding and Fiscal Costs
D. The Short-Term Outlook: Stress Likely to Continue
E. Medium Term Challenges: Greening the Electricity Generation Matrix
F. Policy Options: Stylized Suggestions
References
KOSOVO: TAX REVENUE GROWTH AND FORMALIZATION
A. Introduction
B. Recent Developments in Tax Revenues
C. Disentangling the Sources of Tax Revenue Increase: The Role of Formalization
D. Conclusions and Stylized Policy Implications
TABLES
1a. Value-Added Taxes: Revenue Change and Contributing Factors
1b. Personal Income Taxes: Revenue Change and Contributing Factors
1c. Corporate Income Taxes: Revenue Change and Contributing Factors
2. Total Tax Revenue Change and Contributing Factors
SURVIVING LOW INTEREST RATES: CENTRAL BANKS IN KOSOVO AND OTHER WESTERN BALKAN COUNTRIES
A. The Central Banks’ Financial Situation: An Overview
B. How Did Central Banks Absorb the Shock of Lower Interest Income?
C. Rising Interest Rates in 2022
D. Policy Implications
References