The IMF will help governments in Albania, Bosnia and Herzegovina, Kosovo, the former Yugoslav Republic of Macedonia, Montenegro and Serbia better implement policies and manage their budgets in a more efficient and effective manner.

Johannes Hahn, commissioner for European Neighbourhood Policy & Enlargement Negotiations, said: “Strengthening public financial management is one of the core priorities of the EU’s strategy on enlargement.”

He said it was “essential” to deliver stability in national economies, improve transparency and the effectiveness in managing public funds, as well as delivering better services to citizens.

All these factors combined are “a pre-condition for sustainable growth”, Hahn noted.

He continued: “Given the IMF’s expertise and track record on economic governance, I am delighted to team up with them under this programme. This cooperation will enable us to achieve our joint objectives and further help the countries in the region as they seek EU membership.”

IMF deputy managing director Carla Grasso said the fund was extremely grateful for the EU’s support for the fiscal reform programme.