The Republic of Kosovo has applied for membership in the International Monetary Fund and the World Bank, Kosovo government announced on Thursday.

 

The applications were signed and delivered on Thursday in Brussels by the Kosovo Prime Minister Hashim Thaçi during an evening the Kosovo government had organized before the donors’ conference that took place on Friday.

 

Kosovo economic analysts expect a positive answer by the end of the year. Entry into the two global financial institutions is expected to help the economic development of Kosovo.

Part of this funding will be used to pay off the Kosovo’s share of the debt of ex-Yugoslavia towards the Paris Club and the World Bank, another for technical assistance and the rest for concrete projects.

Membership in the United Nations where Russia holds a veto is not a precondition to join the two financial institutions. Voting power at IMF and WB depends on the capital that each country contributes and the countries that have already recognized Kosovo hold over 60% of the capital.

Membership in the IMF allows Kosovo use of long term loans to fund investments in development of infrastructure and other capital projects. IMF membership is also a precondition for joining the World Bank.   

At the donors’ conference on Friday Kosovo secured grants of 1.2 billion euros, which Kosovo PM called a resounding success. Participating at the conference were 37 countries and 16 institutions.