PRESS RELEASE
Concluding meeting of the IMF Mission with Governor Cani

The Governor of the Bank of Albania, Mr. Shkëlqim Cani held today the concluding meeting with the Mission of the International Monetary Fund, headed by Mr. Julio Escolano, Mission chief, who was accompanied by Mr. Jan Peter Olters, Resident Representative of the IMF in Tirana.

The Mission chief, Mr. Escolano, appreciated the achievements made by the Bank under the Memorandum of Economic and Financial Policies signed between Albanian authorities and the International Monetary Fund. One of the main developments is the fact that inflation rate has remained within the target range of 2-4 per cent, a relatively stable exchange rate, modernization of financial and banking system, etc.

According to the Memorandum, monetary policy through 2004 aims at keeping inflation within the Bank's target. Most prominent developments are expected to be: crediting growth, a wider range of services provided by the banking system, relatively low pressures on inflation, foreign reserves covered by more than 4 months exports, possible improvement of current account deficit, etc.

Governor Cani recognized the high level of cooperation between the Bank of Albania and the International Monetary Fund under this Memorandum, as well as the strong willingness in accomplishing the Bank's commitments.

"Judging from the latest developments in inflation rates, macroeconomic indicators and performance of euro and usd interest rates, the Supervisory Council is considering to slightly reduce the core interest rate" - stated Mr.Cani.

Cash reduction program was another important issue in the today's meeting. The Governor affirmed that Albanian authorities are strongly involved in a mid-term program for the reduction of cash, and the banking system is quite willing to accept a great flow of clients.

The April 14-28, 2004 IMF Mission concluded today its meeting.