BANK OF ALBANIA

PRESS RELEASE
Governor Sejko: Video conference with the Prime Minister Rama, Minister Ahmetaj and commercial banks CEOs

Publication date: 01.04.2020

 

On  1 April 2020, the Governor of the Bank of Albania, Mr Gent Sejko, carried out a video conference with the Prime Minister of the Republic of Albania, H.E. Mr. Edi Rama, the Minister of State, Mr  Arben Ahmetaj and the CEOs of commercial banks to discuss on the role and support that banking system could provide to cope with the situation and minimise the possible negative impacts caused by Covid-19 pandemic.

During this video conference, various issues were addressed, starting from the implementation of the measures taken previously, and further, the expected developments to anticipate the possible impacts of the pandemic prolongation.

At the beginning, the discussion focused on the rescheduling process of payments on loans to largely accommodate the requirements submitted by those clients, whose financial situation is negatively affected by this situation, in order to ease their financial charge at the moment.

In the framework of measures taken by the Albanian Government, it was addressed the issue of opening new bank accounts to all those parties who will benefit from the financial package available by the Government and who currently do not have a bank account. With the purpose to ease this process, it was discussed the opening of these accounts at a rather short time  and with no unnecessary costs.

Another addressed issue was the operational time of banks, which is adopted to the allowed time limits of the movement of the population to provide to clients the necessary access to carry out the indispensable transactions. To  maximally utilise the time limits allowed for the movement of the population, it was addressed the option to ease the movement of the employees of banks beyond the allowed time limits. 

Regarding the guarantee fund offered by the Albanian Government, to support with credit by banks those companies that have difficulties to pay the monthly salaries to their employees, it was discussed the possibility to largely use this instrument, with a rather positive, flexible and proactive approach by banks. The purpose is that many people benefit from this guarantee, as the credit accorded for this purpose is considered to have practically zero risk, due to the guarantee by the sovereign.

Meanwhile, the ample liquidity owned by the banking system, currently provides banks with the possibility to actively participate in the auctions of the Albanian Government securities, by supporting the needs that the Government has in this period, and simultaneously, it may be considered an investment opportunity to the system itself, as lending has experienced difficulties.    

Governor Sejko presented an overview of the situation of the banking system in Albania and the regulatory measures undertaken by the Bank of Albania to support banks and facilitate the operational processes given the current conditions. Then, Governor Sejko ensured that the Bank of Albania stands ready to use all the necessary instruments under the Law, in cooperation with all authorities in Albania, to confront this situation and maintain the financial stability at home.  

CEOs of commercial banks expressed their maximum commitment and the willingness  to largely contribute in establishing the facilities for all the above-stated measures and ensured that they will continue to play an active role even further, up to the complete overcoming of this situation. 

At the conclusion of this video call, all the interlocutors concurred that banking system in Albania remain solid, and with good financial soundness indicators,  and stands ready  to provide all the necessary contribution to overcome this situation.