Kosovo's agreement with IMF at risk

Kosovo's agreement with IMF at risk

PRISTINA, Kosovo -- Kosovo is at risk of breaking its agreement with the IMF less than two years after gaining membership. The deterioration in relations stems from the government ignoring IMF recommendations to lead development policies that would spur economic growth. On Tuesday (May 31st), media quoted a blog by the former head of the economic unit at the International Civilian Office (ICO), Andrea Capusella, where he said that Kosovo's programme with the IMF is off track, describing it as a failure for the country. According to Capusella, it is rare that governments breach their commitments to the IMF. He also said the IMF is expected to officially announce the break of the agreement with Kosovo. Salaries of most public sector employees have risen since January, as promised by the ruling Democratic Party during the December elections campaign. (Express, Zeri, Koha Ditore - 31/05/11)