BANK OF ALBANIA

PRESS RELEASE
Governor Sejko attends 2016 Annual Meetings of the World Bank Group and International Monetary Fund

Publication date: 10.10.2016

 

On 6 - 9 October 2016, Gent Sejko, Governor of the Bank of Albania, attended the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WB), in Washington, DC.

The Annual Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) are a high-level forum bringing together top level decision-makers in the IMF and the WBG, central bankers and ministers of finance of respective member countries, to discuss the latest developments in the global economy.

6-9

The further recovery of the global economy was a prevalent topic in the discussions during the Meetings days. In its Communiqué, IMF's International Monetary and Financial Committee states that:  "�the global economic recovery continues slowly and unevenly, uncertainty and downside risks are elevated, while longstanding headwinds persist."

In this regard, the Committee recommends that to boost global growth and safeguard financial stability, countries need to implement growth-friendly fiscal policies, continue with supportive monetary policies,  prioritise structural reforms, undertake effective financial sector policies, and adopt a stronger global cooperation.

img_0274-300_copy_1

img_0295-300

In the Annual Meetings, Albania was represented by a joint delegation of senior officials from the Bank of Albania and Ministry of Finance, headed by Mr Gent Sejko, Governor of the Bank of Albania, and Mr Arben Ahmetaj, Minister of Finance.

During the Meetings, Governor Sejko met with prominent personalities of international finance, among others, from the IMF: Mr Tao Zhang, Deputy Managing Director of the IMF, Mr Carlo Cottarelli, Executive Director for Albania, Mr Poul Thompsen, Director of the European Department at the IMF, Mr Dong He,  Deputy Director of the Monetary and Capital Markets Department; and from the WB Group: Mr Cyril Myller,  Vice President for Europe and Central Asia, Mr Patrizio Pagano, Executive Director for Albania, Ms Ellen Goldstein, Country Director and Regional Coordinator for Southeastern Europe, etc.

The IMF and WB representatives affirmed the existing positive and successful cooperation with the Albanian authorities, commended the progress made with the reforms, and underlined the need to press ahead with their implementation.

img_0300-200

img_0292-200

img_0277-200 #3

Governor Sejko presented an overview, in these meetings, of the main economic developments in Albania and emphasised that the economy is on a positive growth trajectory. He added that economic growth is expected to pick up and the main economic balances to improve in the next years. Governor Sejko outlined the main challenges facing the Albanian economy, the macroeconomic policy framework and the structural reforms that are needed to boost economic growth.  He also focused on the measures the Bank of Albania has taken related to the monetary policy and financial stability.

The IMF and WBG representatives commended the positive role and the policy implemented by the Bank of Albania, which has contributed to the macroeconomic development and financial stability of Albania.

Discussions focused also on boosting lending and reducing non-performing loans. Governor Sejko pointed out that Bank of Albania's accommodative monetary policy has contributed to lowering the credit price, across all segments of the financial and to the growth of lending to the economy, although it remains sluggish.

About the non-performing loans, Governor Sejko emphasised that the Bank of Albania has taken a series of measures, in an action plan, for their reduction, including a series of legal, fiscal and regulatory improvements.

Both, Governor Sejko and IMF representatives concurred on the fact that the solution of non-performing loans is of paramount importance, not only to the banking system, but also to the entire economy. In conclusion, they iterated that the Albanian banking system is assessed as financially sound, with high capitalisation and liquidity levels.

Governor Sejko met during the Meetings days with central bank governors from other countries, among others, with Mr Murat Çetinkaya, Governor of the Central Bank of the Republic of Turkey. The two governors discussed especially on intensifying the bilateral relations with a view to technical assistance on specific matters to the Bank of Albania. Mr Çetinkaya endorsed the perspective of potential cooperation and enhancing the expertise through the Research and Education Centre in Istanbul, and the possibility of intensifying in the future mutual academic cooperation. 

Governor Sejko attended also the Meeting of the IMF's International Monetary and Financial Committee as well as joint meetings of finance ministers and central bank governors of some IMF constituencies.

While in Washington, Governor Sejko attended a meeting organised by the Embassy of the Republic of Albania in the US with the Albanian diaspora. The meeting aimed at establishing a productive communication with various groups of interest among the diaspora, who may have a positive role in stirring the interest towards fostering economic cooperation and promoting foreign direct investments in Albania. Governor Sejko introduced Albanian students to the Governor's Award. It is dedicated to Albanian students graduated in Albania or abroad for the best diploma thesis on economic issues.