BANK OF ALBANIA
Governor Sejko meets representatives of the International Monetary Fund mission
Publication date: 13.11.2019
On 13 November 2019, the Governor of the Bank of Albania, Mr Gent Sejko, met with the International Monetary Fund (IMF) Mission team, led by Mr Jan Kees Martijn, Mission Chief for Albania. This meeting was held in the framework of Article IV discussions in Albania.
Discussions in the meeting focused around the macroeconomic developments in Albania during 2019 and the outlook on: economic growth; inflation; exchange rate; developments in the banking system; lending; and non-performing loans. Governor Sejko stated that the economic growth has been trending upward, although at a slower pace. However, the economic growth pace will be improving in the next two years, enabling inflation to converge to target in the medium term. He pointed out that the domestic financial environment appears stimulating and the exchange rate appears relatively stabilised. The ALL/EUR exchange rate is closer to the equilibrium, while its fluctuations are dictated by seasonal factors.
Regarding developments in the banking system in Albania, Governor Sejko highlighted that the banking sector appears stable, with indicators showing a financial environment ready to further support the economic growth of Albania. Credit to private sector grew 7.5% on average in 2019 Q3. Credit growth accelerated owing to both the expansion of demand and the improvement of supply for bank credit. Credit supply has been trending upward attributable to the on-going improvement of lending environment and the balance sheet of the banking sector - shown by the drop of the non-performing loans ratio at 10.6%, as well as the increase of competition, following the finalisation of consolidation in the banking sector.
In the coming days, the IMF mission will meet with senior officials from the Bank of Albania and the Ministry of Finance and Economy to discuss, in greater detail, issues related to the performance of the Albanian economy.