WORLD BANK REVIEWS IMPLEMENTATION OF TRANSITIONAL SUPPORT STRATEGY FOR KOSOVO



WASHINGTON, August 1, 2000 - The Executive Directors of the World Bank reviewed the implementation of the Transitional Support Strategy for Kosovo and recommended the allocation of an additional US$35 million from the World Bank's net income to the Trust Fund for Kosovo for the continuation of the program. This additional financing would bring the total commitment from the Bank to over US$60 million in a two-year period since the approval of the Transitional Support Strategy in October 1999.

In selecting activities to be financed from the Trust Fund for Kosovo, the Bank focused initially on two major areas: (1) supporting the creation of institutions and policies for basic macroeconomic management, with a view to enhancing fiscal sustainability, and (2) supporting economic restart.

Sustainability of the reconstruction and recovery program remains the Bank's overarching objective. In FY01, the Bank will focus on two main areas: (1) support for economic reforms and institution building, and (2) support for sustainable sector policies and institutions linked to selective rehabilitation of infrastructure.

The Bank plans to continue the provision of budget support, accompanied by technical assistance in the areas of private sector development and social protection, and will focus on selected infrastructure sectors (transport, water, and energy).

For more information on Economic Reconstruction and Development in Kosovo and Southeast Europe, see the attached Appendix, or visit the joint World Bank/European Commission website at http://www.seerecon.org/