PRESS RELEASE
Governor Sejko participates in the regional summit in Bečići and in the 8-th ECB conference on central, eastern and south-eastern European (CESEE) countries

On 13-15 June 2019, governor of the Bank of Albania, Mr Gent Sejko attended the annual regional summit in Bečići, Montenegro, together with governors of the central banks of Bosnia & Herzegovina, Montenegro, North Macedonia, Croatia, Kosovo and Albania, as well as ministers of finance and tax directors from the region.

In this year's summit on "Financial and Monetary Stability in the region in a climate of slower growth in the eurozone", participants discussed the latest economic developments in the countries of the region.

At the invitation of the organizers, the Governor of the Bank of Albania, Mr Gent Sejko, delivered a speech at the panel of governors, on "Monetary policy and the stability of the banking system in conditions of low inflation and interest rates".

Governor Sekjo pointed out that such activities provide an opportunity to exchange experiences on central banking issues. Mr Sejko presented an overview of Albania's economic and financial performance and the challenges that the Bank of Albania faces.

Governor Sejko stressed the importance of harmonizing fiscal policy with monetary policy as a necessary prerequisite for the country's economic and financial stability, as well as of enhancing the effectiveness of these policies. In this context, the Governor underlined the unique role of these policies in meeting specific objectives: maintaining price stability and fiscal sustainability.

Moreover, Governor Sejko pointed out that keeping inflation at the 3 percent remains the Bank of Albania's main objective, and with the stabilization of the exchange rate, inflation is expected to return to the target within the next two years. The Bank of Albania will use any of its legal instruments to achieve price stability.

Digitization was another topic addressed by the Governor at this summit, a very important process for the banking sector, with the Bank of Albania contributing to its development. To this end, substantial amendments have been made in the regulatory framework on payment systems, which will contribute to promoting competition and innovation in the field of retail payments.

Moreover, the Governor presented an overview of the new challenges that central banks are faced with; the most significant one is the supporting the European Union integration processes through the approximation of policies and internal policies with those of the European System of Central Banks (ESCB).

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Earlier, on 12 June 2019, Governor Sejko attended the 8th ECB Conference on Central and South-Eastern European (CESEE) countries on “Resilience to global headwinds”. CESEE responses to a changing trade and financial landscape, in Frankfurt, Germany. Organised in two sessions and attended by senior representatives of the ECB, governors of central banks of CESEE countries, as well as experts of the banking and financial sector, the conference addressed the challenges of this region in response to trade shocks and the responses to monetary policy and financial shocks.

During the conference's discussions, Governor Sejko, in his word regarding Albania's experience against current challenges, stressed the importance of lending to the economy, a process that should be supported by the banking sector. The positive results of the inter-institutional plan for the reduction of non-performing loans and the consolidation of the banking sector are significant factors that give the necessary space to the financial intermediation of the economy. However, the improvement of the business climate and continuation of structural reforms are indispensable prerequisites for promoting sustainable and sound lending.