Investor Presentaiton

Opportunities to Foreign Investment in Kosovo The primary interests of foreign investors are to increase profitability, competitiveness, and access to international markets. The primary interest of developing countries is to foster domestic economic growth. The legacy of the communist regime provided the transition environment with negative characteristics and worsened the situation. Therefore, time, sacrifices and hard effort were required in order the subsequent negative outcomes could be overcome. Key economic indicators On June 29, 2009, Kosovo formally joined the World Bank and International Monetary Fund (IMF). The real development of the economy measured by the gross domestic product (GDP) has been favorable in the past years, showing a positive and continuously increasing trend. Despite the effects of the international financial crisis, Kosovo was one of the few countries in Europe that experienced positive economic growth in recent years. As donor support decreases, the private sector consumption and investments are becoming the most important factors behind economic growth. These investments are mainly being driven by the fast expanding financial sector. Moreover, the Kosovo Government runs a stable and forward-looking fiscal policy. The tax revenue base has been widened, thus enabling the Government expenditures to increase and in turn support economic growth. Apart from the favorable economic performance, Kosovo runs a very stable monetary policy. Kosovo is one of the few countries outside the EU-zone that has introduced the Euro as its official currency. The use of the Euro has provided the grounds for low inflation and a stable macroeconomic environment. By eliminating the exchange rate risk, transaction costs have been reduced, thus facilitating the promotion of trade and investment. Due to the absence of monetary instruments resulting from the use of the 12

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