The Prime Minister of Kosovo Avdullah Hoti and the US Ambassador to Kosovo Philip Kosnett signed a new Investment Incentive Agreement (IIA) enabling the U.S. International Development Finance Corporation (DFC), America’s development bank, to deploy its full range of financial products in Kosovo.
“DFC is pleased to have the IIA between Kosovo and the United States in place, solidifying U.S. commitment to expand the financial tools available for the development of Kosovo’s economy, especially its private sector,” a statement of US Embassy quotes John Jovanovic, DFC’s Deputy Vice President and Managing Director for the Western Balkans and Aegean.
“We see great potential for DFC to help mobilize investments that create jobs and support development for the people of Kosovo,” Jovanovic added.
U.S. law requires any country, including Kosovo, to enter into an IIA with the United States in order for DFC to provide its entire range of financial products which includes debt financing, equity investments, political risk insurance, and grants for technical assistance, the embassy clarifies.
Kosovo’s Government empathized that Kosovo is the first country in the Western Balkans to sign this IIA agreement with the DFC.
“This agreement expresses the joint will of the Republic of Kosovo and the United States to encourage economic activities in Kosovo that promote economic development and productive capacities of our country,” Government said.
Launched in 2020, DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. It invests across sectors including energy, healthcare, critical infrastructure, and technology.