The World Bank announced that its Board of Executive Directors has approved financial assistance for two new projects in Kosovo totaling $89.7 million (87.2 million euros) aimed at strengthening the competitiveness of the private sector.
The World Bank will support the Financial Sector Development Project, valued at $52 million, and the Trade and Transport Facilitation Project (TTFP) 2.0, valued at $37.7 million, through concessional financing from the International Development Association (IDA), the global lender said in a press release on Thursday.
The Financial Sector Development Project aims to enhance financial stability and inclusion in Kosovo by strengthening the deposit insurance fund’s capacity, financing underserved firms, and catalyzing faster payments. The project will strengthen the financial environment for micro, small, and medium enterprises (MSMEs) by allocating capital for credit guarantees through the Kosovo Credit Guarantee Fund, potentially attracting about $200 million in private sector investment, according to the announcement.
The project will also assist Kosovo’s Ministry of Finance, Labour, and Transfers in establishing a National Development Bank, which will finance development projects aligned with the government’s priorities.
The second project, TTFP 2.0, will fund infrastructure and IT systems to reduce trade costs and increase transport efficiency, boosting trade between Kosovo and neighboring countries. The project will implement electronic toll systems on key roads and enhance safety at 21 railway crossings and one high-risk road section in Kosovo, reports Express.
“Focusing on improving access to finance for firms and facilitating connectivity is a key factor for growth and job creation, and will bring clear benefits to Kosovo and its citizens,” said Massimiliano Paolucci, World Bank Manager for Kosovo and North Macedonia, in a statement.
