PRESS RELEASE
Questions and Answers at the press conference, 20 December 2012

Question: Mr. Governor, in recent years you have persistently highlighted the importance of coordinating the monetary policy with the fiscal policy. The budget for 2013 is more aggressive in terms of forecasted levels for the budget deficit and public debt. What is the impact of the next year's budget on your decisions over the last two months, especially with regard to discontinuing the easing monetary conditions through the key rate cut?

Answer: I would like to reinforce an early idea that the harmonisation of fiscal and monetary policies is crucial for us; nonetheless, we should all be cautious to keep them apart. We deem, however, that each institution should discharge the duties assigned to it by the law, responsibly and transparently. I think that our decisions during this year in the area of monetary policy were made against the backdrop of a global crisis and a global contraction of lending. Moreover, in the first quarter, we witnessed withdrawal of international banks from crediting, in general, the economy. With regard to the latter, I would like to say that this is a phenomenon predominating the market due to European banks movement towards capital increase. Under these circumstances, the macropolitical spectrum of the Bank of Albania has been on the side of prudence. Today's decision proves once again what you asked about the next year's budget.