The World Bank’s Board of Executive Directors today approved financial assistance for two new projects in Kosovo to strengthen private sector competitiveness and improve connectivity.
Both the $52 million (€49.1 million) Financial Sector Development Project and the $37.7 million (€34.7 million) Trade and Transport Facilitation Project (TTFP) 2.0 are being financed through concessional loans from the International Development Association (IDA).
“Through these two projects, Kosovo demonstrates its commitment to strengthening competitiveness, supporting small firms that are essential to the economy,” the statement quoted Massimiliano Paolucci, World Bank Country Manager for Kosovo and North Macedonia. “Focusing on improving access to finance for businesses and facilitating connectivity is a key factor for growth and job creation, and this will bring clear benefits to Kosovo and its citizens.”
The Financial Sector Development Project aims to improve financial stability and inclusion in Kosovo by strengthening the capacity of the Deposit Insurance Fund, financing less supported enterprises, and promoting faster payments. The project will strengthen the capacity of the Kosovo Deposit Insurance Fund to protect the savings of citizens and businesses in Kosovo, and support the Central Bank of Kosovo in promoting modern, digital payment systems. The project will also improve the financial environment for micro, small, and medium-sized enterprises by allocating capital for loan guarantees through the Kosovo Credit Guarantee Fund, potentially leveraging nearly $200 million in private sector investment.
