IMF Mission successfully concludes the Review of the SBA Agreement and the RSF Program: CBK’s reforms and Financial System stability highly praised

The Central Bank of the Republic of Kosovo (CBK) announces the successful completion of the International Monetary Fund (IMF) Mission, led by Mission Chief Mr. David Amaglobeli, with a positive assessment of the review of the Stand-By Agreement (SBA) and the Resilience and Sustainability Facility (RSF) Program. On this occasion, a statement was issued, and a joint conference was held between CBK, the Ministry of Finance, Labor and Transfers, and the IMF.

During the conference marking the conclusion of this assessment, the IMF Mission Chief stated that CBK has made impressive progress in advancing financial sector reforms, emphasizing that significant internal institutional reforms have been implemented to enhance effectiveness, efficiency, and transparency. It was also confirmed that the banking sector remains liquid, well-capitalized, profitable, and maintains low levels of non-performing loans.

Furthermore, he highlighted that CBK is developing and operationalizing a macroprudential policy framework while strengthening its crisis management framework. Currently, at its request, CBK is undergoing an assessment of the Central Bank Transparency Code (CBT) led by the IMF and a Governance Audit by a partner central bank, underscoring CBK’s commitment to best practices.

Mr. Amaglobeli pointed out that the Central Bank of the Republic of Kosovo has taken significant steps towards integration with the Single Euro Payments Area (SEPA) and the development of the regional instant payment system (TIPS Clone). According to the IMF, these initiatives contribute to the creation of a fast, secure, and cost-effective payment infrastructure, benefiting businesses and citizens while strengthening regional integration.

The IMF Mission found that these reforms have supported the rapid and healthy expansion of the financial sector. Financial inclusion has also improved, with an increase in the number of bank accounts, e-money accounts, and transactions through the Kosovo Interbank Payment System (KIPS).

Additionally, the IMF has assessed that the newly launched Platform for Comparison of Financial Products and Services is expected to enhance financial education and transparency.

During the press conference, CBK Governor Mr. Ahmet Ismaili stated that CBK has worked diligently to strengthen institutional governance structures, enhance financial stability, and align the regulatory framework with international standards, particularly those of the European Union. The IMF’s positive assessment highlights CBK’s proactive approach to these efforts, and we are proud of the significant progress achieved.

Governor Ismaili added that with the conclusion of the review of IMF-supported programs, all structural objectives and applicable indicative targets for CBK have been successfully implemented, demonstrating our strong commitment to policies and program ownership. Therefore, the program’s outcomes confirm its success, while we remain open to exploring opportunities for new programs with the IMF.

Finally, Governor Ismaili expressed his gratitude to the IMF team for their constructive collaboration and support through technical assistance aimed at advancing the undertaken reforms.

The IMF has issued a press release, which you can read in full here 🔗 [https://www.imf.org/en/News/Articles/2025/03/20/pr2571-kosovo-review-sba-rsf]