PRESS RELEASE
Albania and the EBRD sign a Memorandum of Understanding to boost local currency lending and capital market development

On 16 February 2018, the Governor of the Bank of Albania, Mr Gent Sejko, signed, on behalf of the Bank of Albania, a Memorandum of Understanding between the European Bank for Reconstruction and Development (EBRD), the Bank of Albania and the Albanian Ministry of Finance and Economy to foster cooperation on the use of the domestic currency and the development of the local capital market in Albania.

The Memorandum aims to boost local currency lending to small and medium-sized enterprises (SMEs) through a specific programme of the EBRD for this purpose. Under the programme, loans can be provided to these enterprises, under competitive terms, in accordance with the relevant policies and procedures. The programme also works with the national authorities, either directly or in coordination with international financial organisations and partners, to foster a positive environment for local currency lending.

Regarding the capital market development, the Memorandum also includes an action plan, where the parties (EBRD, the Albanian Ministry of Finance and Economy and the Bank of Albania) commit to further concrete actions in this field.

Governor Sejko said about the Memorandum: “The exclusive role of the Bank of Albania as the monetary and bank supervision authority is concretely supported by this agreement. The parties’ commitment to cooperate on accelerating the development of the Albanian capital market by strengthening the use of local currency, in addition to the ongoing work in the area of banking supervision and governance as well as on NPL resolution, will have a positive impact in improving the effectiveness of economic and monetary policies, and in reducing financial stability risks for our country.”

This Memorandum was signed during the Western Balkans Investment Summit organised by the European Bank for Reconstruction and Development in London. The Summit is hosted every year by the EBRD President, Sir Suma Chakrabarti and brings together the Prime Ministers of the six Western Balkan countries: Bosnia and Herzegovina, Kosovo, Montenegro, Macedonia, Serbia and Albania.

During the Summit, Governor Sejko had the opportunity to meet also with representatives of the European Bank for Reconstruction and Development, as well as with representatives of other international financial institutions to discuss the macroeconomic developments in Albania, the potential it offers for investments and the prospects of cooperation with these institutions on various projects.

EBRD Press Release