On July 17, 2018, the Governor of the Bank of Albania, Gent Sejko, held a meeting with representatives of the International Monetary Fund headed by Mr. Jan Kees Martijn, the new Chief of Mission of the International Monetary Fund for Albania, at the Bank of Albania premises.
This meeting was held in the framework of the ongoing exchange of views and inter-institutional dialogue.
The meeting started with a statement by Governor Sejko on the main economic developments, with particular focus on the financial and banking sector in Albania. The Governor said that the macroeconomic environment is stable and provides adequate conditions for a positive economic growth. Official data show that the Albanian economy grew by 4.45% in the first quarter of the year, an increase mainly based on the increase of electricity production and export. He stressed that the potential sectors that are expected to play an important role in the country’s economic growth in the future are the development of tourism and agriculture.
Focusing on financial developments in the country, Governor Sejko stressed that the Albanian banking system is characterized by high liquidity rates and is well-capitalized.
The Governor paid special attention to the measures taken by the Bank of Albania to preserve and guarantee price stability in the country. In this context, he introduced the participants with Bank of Albania’s decisions on inflation and exchange rates, pointing out that the Bank of Albania’s intervention in the domestic foreign exchange market has had positive effects and was positively expected by market agents.
Maintaining the inflation rate at 3% remains the main objective of the Bank of Albania, and in this regard, Governor Sejko said that, according to the forecasts of the Bank of Albania, inflation is expected to return to the target by 2020. The Bank of Albania is pursuing a easing monetary policy which is positively transmitted to financial markets.
During this meeting, the Governor recognized the representatives of the International Monetary Fund and the positive results in the framework of the reduction of non-performing loans. The latest data show a decline in non-performing loans at 13.3% in May. He also introduced the Tirana Approach’s latest Bank of Albania project, which aims to provide problem-solving solutions to large borrowers.
Another important issue discussed during this meeting was the consolidation of the banking system and the entry of new players in the market. Governor Sejko said that these changes are being carried out under the laws and regulations in force.
The modernization of the payment system and the entry into force of the law “On emergency recovery and intervention in banks in the Republic of Albania” was another issue discussed at the meeting.
For his part, Martijn praised the work done by the Bank of Albania and the fruitful cooperation between the two institutions. He also stressed that thanks to the economic policies and structural reforms undertaken over the years, the country’s underlying developments are apparent.
In conclusion, Governor Sejko expressed his gratitude for the continued technical support provided by the International Monetary Fund for the Bank of Albania.
News Source: BoA