by Andreas S. von Warburg
The International Monetary Fund (IMF) is the first international institution to formally recognize Kosovo’s independence and to consider the application for admission to membership from the newly-formed Balkan nation, according to a statement by the Washington-based multilateral institution.
“In the context of this application, it has been determined that Kosovo has seceded from Serbia as a new independent state and that Serbia is the continuing state,” states the press release. “Accordingly, Serbia continues its membership in the International Monetary Fund (IMF) and retains all of its quota in the Fund, and all assets in, and liabilities to, the IMF.”
The IMF points out that the application for admission to membership received from Kosovo will be considered in due course.
“Under the IMF’s prescribed procedures for membership applications, the application must first be investigated by the IMF’s Executive Board,” explains the press release. “After its investigation, the Executive Board submits a report to the Board of Governors of the IMF with recommendations in the form of a Membership Resolution. These recommendations cover the amount of quota in the IMF, the form of payment of the subscription, and other customary terms and conditions of membership. After the Board of Governors has adopted the Membership Resolution, the applicant country may become a member once it has taken the legal steps required under its law to enable it to sign the IMF’s Articles of Agreement and to fulfill the obligations of IMF membership.”
IMF’s statement is an important break through for Kosovo, which broke away from Serbia in February and has been recognized by 42 nations, including the United States and 20 of the 27 members of the European Union.
Its independence is still opposed by Serbia, with strong Russian backing. Belgrade’s government has vowed to block it from joining international institutions such as the IMF and its sister organization, the World Bank.
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