DEMARCHE DELIVERED: KOSOVO'S IMF AND WORLD BANK

UNCLAS SAN JOSE 000321 SENSITIVE SIPDIS DEPT FOR EEB/IFD/OMA DFREUDENWALD AND EEB/IFD/ODF CLAITINEN; PLEASE PASS TO TREASURY DSCHMERIN AND SSENICH E.O. 12958: N/A TAGS: CS ECON EFIN PGOV PREL KV SUBJECT: DEMARCHE DELIVERED: KOSOVO'S IMF AND WORLD BANK MEMBERSHIP BID REF: STATE 33709 ¶1. (SBU) SUMMARY. Post delivered the demarche on Kosovo's membership bid (Reftel) to the International Monetary Fund (IMF) and World Bank (WB) to Finance Minister Guillermo Zuniga Chaves (WB Governor, IMF Alternate Governor) on April 15 and Central Bank President Franciso de Paula Gutierrez (WB Alternate Governor, IMF Governor) on April 17. The Finance Minister received the message positively. The President of the Central Bank said that he would await instructions from the Costa Rican Foreign Ministry though he was receptive to the USG position. END SUMMARY. ¶2. (SBU) With both officials, Post emphasized the consistency of following-up recognition of Kosovo with supporting Kosovo's membership to the international financial community, the need to strengthen economic stability in the Balkans, and the need to provide Kosovo access to professional, public sector financial and macroeconomic policy advice. Minister Zuniga stated -- positively -- that "he would look over the proposal." Post believed that he was not aware of the need to cast a vote and noted the IMF schedule for voting. Central Bank President Gutierrez was aware of the Kosovo vote and the need to vote within six weeks (as a WB Governor). He also explained that he would vote in accordance with instructions from the Foreign Ministry. Nonetheless, President Gutierrez was receptive to Post's argument for supporting Kosovo. -------------- COMMENT -------------- ¶3. (SBU) Given the GOCR,s quick recognition of Kosovar independence and statehood, we would anticipate that the GOCR will support Kosovo,s application to the IMF and the WB. Such a decision would be consistent with the Foreign Ministry,s first major decision regarding Kosovo (and we will follow up with the MFA). Also, the Finance Ministry has close ties to Treasury -- and both the IMF and the WB -- and understands the importance of professional international assistance. CIANCHETTE