Daily: No aid for Kosovo due to IMF deal violation

Kosovo will lose EUR 20mn of the European Union aid for its non-compliance with an agreement Priština has with the IMF, say reports.

Izvor: Tanjug

Tuesday, 07.12.2010.

11:45

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Kosovo will lose EUR 20mn of the European Union aid for its non-compliance with an agreement Pristina has with the IMF, say reports. Albanian language daily Koha Ditore writes today that the withdrawal of aid also comes due to "big pre-election promises". Daily: No aid for Kosovo due to IMF deal violation The daily's correspondent from Brussels writes that "the European Commission had pointed out that macrofinancial assistance of the EU to Kosovo will depend on strict implementation of the agreement between Kosovo and the IMF". Pointing out that it was "not easy for Kosovo to become accepted in the IMF", the daily wrote that due to the political situation and election campaign, "the Kosovo authorities risk deterioration of the relations with the IMF, which could also result in jeopardizing the macroeconomic financial assistance the European Union had earmarked for Kosovo". It is said in the EU that Kosovo will lose the second tranche of the EU's macrofinancial assistance of EUR 20mn for its non-compliance with the agreement with the IMF and that future possible assistance of the Union will also be "under a big question mark". According to the newspaper, the situation is the result of the promises made by the outgoing Kosovo Albanian Prime Minister Hashim Thaci at rallies of the Democratic Party of Kosovo, when he said that wages will be increased in public services, education, justice and health by 30 to 50 percent next year. The IMF, however, stated that under the signed agreement, "the Kosovo authorities may increase wages in the public sector at most by seven percent".

Daily: No aid for Kosovo due to IMF deal violation

The daily's correspondent from Brussels writes that "the European Commission had pointed out that macrofinancial assistance of the EU to Kosovo will depend on strict implementation of the agreement between Kosovo and the IMF".

Pointing out that it was "not easy for Kosovo to become accepted in the IMF", the daily wrote that due to the political situation and election campaign, "the Kosovo authorities risk deterioration of the relations with the IMF, which could also result in jeopardizing the macroeconomic financial assistance the European Union had earmarked for Kosovo".

It is said in the EU that Kosovo will lose the second tranche of the EU's macrofinancial assistance of EUR 20mn for its non-compliance with the agreement with the IMF and that future possible assistance of the Union will also be "under a big question mark".

According to the newspaper, the situation is the result of the promises made by the outgoing Kosovo Albanian Prime Minister Hashim Thaci at rallies of the Democratic Party of Kosovo, when he said that wages will be increased in public services, education, justice and health by 30 to 50 percent next year.

The IMF, however, stated that under the signed agreement, "the Kosovo authorities may increase wages in the public sector at most by seven percent".

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