The IMF stated on June 1 that Kosovo had violated the standby arrangement with this international financial institution and that, for this reason, it was not possible to continue the control of work of the Kosovo government in the field of finance.

Elements of the 2011 budget, especially the high increase of salaries, is in collision with the program agreements, the IMF said in the statement, explaining that it is unable to control the implementation of the agreement because of such behavior of the government.

The IMF recalled that the standby arrangement with Kosovo was signed with the purpose of establishing fiscal sustainability and preservation of financial stability.

This, according to IMF, should have been accomplished through the limitation of the spending of money and through the increasing of the government's deposits with the Central Bank of Kosovo.

The Pristina media reported that this, essentially, represented the termination of the agreement with the IMF and that, directly and indirectly, Kosovo had lost around EUR160 million in aid from international financial institutions.

Hashim Thaci said at the June 1 government session that the supervision of economic policy had been agreed with the IMF and that this will secure the continued support of this international financial institution.