Mr. Tao Zhang, Deputy Managing Director of the International Monetary Fund
(IMF), issued the following statement in Pristina today at the conclusion
of his visit to Kosovo.
“It has been a great pleasure to visit Kosovo for the first time. I had the
privilege to meet with Prime Minister Ramush Haradinaj, Assembly Speaker
Kadri Veseli, Finance Minister Bedri Hamza, and Acting Central Bank
Governor Fehmi Mehmeti for very fruitful discussions on Kosovo’s economic
reforms and policy priorities. I also had the opportunity to visit the city
of Prizren to experience some of Kosovo’s impressive cultural heritage, and
met with students at the University of Pristina to hear about their own
challenges and aspirations for the future.
“Kosovo has been a successful example of a post-conflict country able to
develop its economy by implementing important reforms. In my meetings, I
encouraged the authorities to continue on this path, as Kosovo will need
strong, sustained, and inclusive growth to reduce the large income gap with
the rest of Europe. This includes reducing unemployment, especially among
the young, and the dependence on remittances. In this regard, I underscored
the need to accelerate such reforms— especially in the areas of education,
governance, health, infrastructure, and access to finance, to improve
competitiveness, attract foreign direct investment, and foster private
sector development.
“Prudent fiscal policies and macroeconomic stability are the basic
conditions for stronger growth, and I commended the Kosovar government for
the fiscal discipline and financial stability of recent years. In this
regard, reforming and containing increases in untargeted social benefit
spending as well as in public wages should help create the fiscal space
needed for priority spending on education, health and infrastructure within
the limits of the fiscal rule, which remains appropriate. Strengthening the
tax administration will help to fight informality and ensure a friendly
environment for investment.
“I would like to reiterate the IMF’s strong support for Kosovo and look
forward to our continued partnership with the government in its important
reform program through policy advice and technical assistance. Finally, I
would like to thank the government and the people of Kosovo for their very
warm welcome and hospitality."
