IMF sees deflation threat to Western Balkan recovery

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The International Monetary Fund

An extended period of deflation would be particularly damaging for the Western Balkan countries, an IMF special report warned today, considering their high levels of public debt and non-performing loans (NPLs).

The report, The Western Balkans: 15 years of economic transition, prepared by a staff team from the IMF's European department, takes stock of the economic developments and challenges in Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro and Serbia.

One key risk to the

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