Serbia wants out of Kosovo debt?

Serbia demands that the Kosovo debt be deducted from its overall balance toward the World Bank, official announcements say. Serbia has suggested to the international financial institution that the Kosovo debt issue be resolved by returning the funds Serbia already paid or hacking them off the remaining USD 215mn of the country's overall debt, Deputy Prime Minister Bozidar Djelic's cabinet said in a statement. Serbia wants out of Kosovo debt? Djelic, who is currently in Washington, told reporters after meeting with the World Bank executive director, Graham Willer, that the move was not connected to Kosovo's status. “Rather, [it concerns] the healthy principle that the one who collects taxes must also pay the debt, and just as the city of Belgrade has its own debts and is a part of Serbia, so should Kosovo,” Djelic said. He specified that the amount USD 800mn was at issue and that there was still a USD 582mn debt that Kosovo owes to the World Bank. “Serbia has already paid USD 215mn on behalf of Kosovo-Metohija and we presented what had been agreed at the international negotiations, i.e. once the status is settled, our province should service its own debt burden, including the USD 582mn, and that Serbia's financial obligation should be cut by the amount already paid,” Djelic explained. The statement from his cabinet further adds that Willer described Serbia's economic reforms as "exceptionally successful", particularly concerning privatization, public spending and reduction of poverty, but added the country needed to continue working on bringing down its payment balance deficit and improving structural reforms. A delegation led by Djelic also met with head of IMF mission for Serbia Paul Hilbers as they visited Washington. They emerged from the meeting announcing an IMF team will be visiting Serbia next week, when the two sides will consider the possibility of making a new arrangement.

Serbia wants out of Kosovo debt?

Đelić, who is currently in Washington, told reporters after meeting with the World Bank executive director, Graham Willer, that the move was not connected to Kosovo's status.

“Rather, [it concerns] the healthy principle that the one who collects taxes must also pay the debt, and just as the city of Belgrade has its own debts and is a part of Serbia, so should Kosovo,” Đelić said.

He specified that the amount USD 800mn was at issue and that there was still a USD 582mn debt that Kosovo owes to the World Bank.

“Serbia has already paid USD 215mn on behalf of Kosovo-Metohija and we presented what had been agreed at the international negotiations, i.e. once the status is settled, our province should service its own debt burden, including the USD 582mn, and that Serbia's financial obligation should be cut by the amount already paid,” Đelić explained.

The statement from his cabinet further adds that Willer described Serbia's economic reforms as "exceptionally successful", particularly concerning privatization, public spending and reduction of poverty, but added the country needed to continue working on bringing down its payment balance deficit and improving structural reforms.

A delegation led by Đelić also met with head of IMF mission for Serbia Paul Hilbers as they visited Washington. They emerged from the meeting announcing an IMF team will be visiting Serbia next week, when the two sides will consider the possibility of making a new arrangement.