IMF Report acknowledges CBK’s ambitious agenda of governance and institutional reforms to strengthen financial stability and European integration

The Central Bank of the Republic of Kosovo (CBK) has been praised by the International Monetary Fund (IMF) after the completion of the 2024 Article IV Consultation and the Third Reviews of the Stand-By Arrangement (SBA) and the Resilience and Sustainability Facility (RSF) arrangements, following the presence of the IMF mission in our country from October 28 to November 11, 2024.

The IMF staff report, led by Mr. David Amaglobeli – Chief of Mission for Kosovo, has welcomed the progress made by the CBK in advancing the legal and supervisory framework and the reforms undertaken by the CBK aimed at preserving financial stability.

The IMF’s positive assessment underscores the CBK’s proactive approach to strengthening governance, financial stability and sustainability, digital payments, as well as the reforms undertaken to harmonize with the standards and practices implemented in the European Union.

In addition, the IMF assessed the CBK’s progress in advancing the legal framework through the new Banking Law, which has laid the foundation for modern regulatory and supervisory practices, and the Payment Services Law, in addition to strengthening and advancing banking supervision. The modernization of the banking supervision process, including the Supervisory Review and Evaluation Process (SREP), is in line with the supervisory framework implemented by the European Supervisory Authorities.

According to the report, the banking sector remains healthy – profitable and well-capitalized, with low levels of non-performing loans and significant potential for expansion. The removal of fees on basic bank accounts and administrative measures to combat informality have contributed to access to finance and strong household credit growth.

The reports stated that the performance of the program was strong, while all quantitative performance criteria and indicative targets for the third review of the Stand-By Arrangement have been met.

In conclusion, the CBK expresses its gratitude to the IMF team for the constructive cooperation and support in the form of technical assistance to advance the reform process.

For more details, please read here the full Press Release 🔗 https://www.imf.org/en/News/Articles/2024/12/21/pr-24497-kosovo-imf-concludes-2024-aiv-consultation-and-3rd-rev-under-sba-and-rsf-arrangements and the Report 🔗 https://www.imf.org/en/Publications/CR/Issues/2024/12/21/Republic-of-Kosovo-2024-Article-IV-Consultation-and-Third-Reviews-Under-the-Stand-By-559944 published by the IMF.