KOSOVO: Newly independent Kosovo won €1.2 billion in aid pledges yesterday at a donors' conference billed as the first step to rebuilding its shattered economy.
Prime minister Hashim Thaci announced that Kosovo, which broke away from Serbia in February, had applied to join the World Bank and International Monetary Fund (IMF). He reaffirmed its long-term goal of entering Nato and the European Union.
"This is testimony that the world believes in Kosovo," Mr Thaci told delegates after the one-day conference attended by the EU's 27 countries, the US and other international donors.
The European Commission pledged €500 million of EU funds ahead of the event and the US offered $400 million (€252 million). Individual EU states added their own contributions - the Irish contribution was €5 million over three years, with Germany providing €100 million.
"Kosovo is a profoundly European matter . . . and this is the most concrete, tangible proof of our commitment to Kosovo and stability in the western Balkans as a whole," EU enlargement commissioner Olli Rehn said.
The amount raised includes some EU money that was already earmarked for Kosovo, and falls short of the €1.4 billion of funding needs that had been identified for Kosovo between 2009 and 2011.
But Mr Thaci, vowing "zero tolerance" on the corruption that has dogged Kosovo for years, said the result was better than expected because much of the funds covered only the next two years.
Kosovo has been recognised by 43 mostly western states, but could face bids by Belgrade and Moscow to keep it out of the international bodies needed to attract loans and investment.
However, officials in Kosovo are convinced they can amass enough support to win membership of the World Bank and IMF.
A large part of the new aid will go to servicing Kosovo's share of the Yugoslav debt inherited from Serbia.