Kosovo Marks Progress Following Successful IMF Program Review

The recent conclusion of the International Monetary Fund's review of Kosovo’s Stand-By Arrangement (SBA) and Resilience and Sustainability Facility (RSF) underscores the country’s commitment to financial stability and reform.

The Central Bank of the Republic of Kosovo (CBK), in close cooperation with the Ministry of Finance and the IMF, has made significant strides in strengthening its regulatory and supervisory frameworks. Key reforms highlighted include the adoption of new banking and payment service laws, the development of a risk assessment framework aligned with European standards, and the enhancement of the banking sector’s resilience through stricter capital requirements and the establishment of a recovery and resolution mechanism. The recent submission of Kosovo’s preliminary application to join the Single European Payments Area (SEPA) signals a step toward deeper European financial integration, with accompanying advancements in payment infrastructure and instant transaction capabilities. Furthermore, the removal of fees for basic payment accounts and efforts to promote cashless payments have expanded financial inclusion, while new consumer protection initiatives aim to boost transparency and competition.

Kosovo’s banking sector remains robust, with strong capitalization, liquidity, and low levels of non-performing loans – factors recognized in the IMF’s positive assessment. All structural objectives outlined under IMF-supported programs have been met, reinforcing the country’s reputation for effective economic governance and a proactive approach to reform.

This milestone not only reflects Kosovo’s progress in banking and financial sector reforms but also lays the groundwork for further integration into European markets and ensures a foundation for sustained economic growth and stability.