PRESS RELEASE
Questions and Answers at the Press Conference on the Monetary Policy Decision, 3 August 2016

Question : According to a media report today, the Supreme State Audit has found that the amount stolen from the treasury of the Bank of Albania is three times the amount that had been previously publicly declared. My questions are: do you confirm the veracity of this figure? And, if you may, which are the commercial banks mentioned in that report?

Governor : Thank you for asking a question, which gives me the opportunity to shed some light on this issue. Before the Supervisory Council meeting, I read the newspaper as well. Normally, the Bank of Albania has informed the public and has continuously confirmed, even at period when I started my term as the Governor, that the figure of the stolen amount is the one that is evidenced by the inventory and declared. This was a result of inventory checks carried out upon the order of the Administrators at the moment the theft was identified, as well as of subsequent inventory checks carried out by other groups, that have reconfirmed this figure. Also, the figure amounting to ALL 713 million was reconfirmed from both other external auditors, in the financial statements, and the International Monetary Fund mission, and the FSVC, a consulting institution for the Bank of Albania. That is to say, this figure is confirmed by several audits and inventories.

I do not have any information regarding the amount assumed in today's papers. Any report, including the report of Supreme State Audit and the Supreme State Audit, have confirmed the above-mentioned figure.

So once again, this is the confirmed figure in the Supreme State Audit reports. Of course, I am not the one who carries out the inventory. I organize the work and receive information from the groups. But, many internal and external working groups have confirmed this figure.

Any other media speculation to create a buzz would mar the image of the Bank of Albania and misinform the public regarding the stolen amount of money in the Bank of Albania.

Question : Mr. Governor, you mentioned and also welcomed the judicial reform. But, political developments have been very dynamic, particularly over the last month, as there seems to be an increase of the political risk. Is this what the Bank of Albania also perceives, and what would the impact be? Is this an added risk to the economy?

Governor: In theory, any political destabilization would impact the level of economic growth. In the case of the justice reform, we know that it was approved with an unprecedented consensus, by the 140 members of the parliament. This was a very positive sign for Albania in general, its integration process and the economy.

From the Bank of Albania's point of view, this is a very optimistic sign regarding credit performance, and the implementation of the plan of measures for non-performing loans. The implementation of the judicial reform would contribute to better execution of the collateral and enforcement of contracts in the long and medium-term between banks and borrowers.

So, after the approval of the justice reform, the current perception of the Bank of Albania is positive. This creates positive premises for the Albanian economy as well. We will see the gradual implementation of the justice reform as it will have to go through its own phases. Let us hope the implementation will be also consensual and will move forward and make positive steps, similarly to the adoption of the constitutional package.

Question : You mentioned the theft, but practically only the physical theft amounting to ALL 713 million. Meanwhile the media alleged today about a theft scheme, in collaboration with several [commercial] banks. Do you have a clear depiction of the scheme? Do you have any information whether there is such a scheme in the first place?

Governor: I do not know of any such scheme to exist. Perhaps this is the fantasy of the press or whomsoever, at the time of the theft.

In relation to the official inventory carried out for the theft, the amount is the same to that published and reconfirmed. We have no official or unofficial, confidential or non-confidential information, to tell us that there is such a scheme related to the theft at the Bank of Albania. As the Governor of the Bank of Albania, I have no information whatsoever concerning this matter.