An International Monetary Fund (IMF) mission led by Costas Christou visited Kosovo during March 7–15 to continue discussions with the authorities on the first review under the Stand-By Arrangement (SBA). At the conclusion of the mission Mr. Christou made the following statement today in Pristina:

“An IMF staff mission assessed economic and financial sector performance, and held discussions on the draft budget for 2011 as part of the first review under the Stand-By Arrangement. The discussions on the 2011 budget advanced but could not be concluded during the mission’s stay and will continue in the period ahead. One of the outstanding issues is the substantial increase in the government wage bill envisaged in the budget draft. This increase is not in line with the program objectives under the SBA.

“The economic recovery is on track amid robust growth and private sector credit. Real output growth is expected to reach 5½ percent in 2011. There are encouraging signs that, despite an adverse trend in nonperforming loans, the banking sector remains stable and adequately capitalized overall.”