PRESS RELEASE
Governor Sejko meets representatives of the International Monetary Fund Mission

On 12 July 2024, the Governor of the Bank of Albania, Mr Gent Sejko, had a concluding meeting with the International Monetary Fund (IMF) Mission team, led by Ms Anke Weber, the IMF Mission Chief for Albania.

The meeting focused on the analysis regarding the latest economic and financial situation in Albania, the projections for the future, as well as on the policies pursued.

Governor Sejko pointed out that the country's economic and financial development trends have been and remain positive, even in the face of a challenging global environment. In addition, the update of our forecasts suggests this positive economic development momentum will continue in the next year as well.

Regarding the resilience of the banking sector, Governor Sejko said that this sector displays stabilised or improving capital, liquidity and profitability indicators. He stated that, this sector has continued to supply the necessary funds for the growth of consumption and investments, making sure - at the same time - to preserve the Albanian households’ savings.

To this end, the gradual and prudential normalisation of monetary policy stance during 2022-2023 has enabled the reduction of inflationary pressures, without jeopardising the medium-term economic growth prospect.

On her part, the IMF Mission Chief for Albania, Ms Weber confirmed that the monetary policy implemented by the Bank of Albania has provided a positive impact on safeguarding the monetary and financial balances of Albania.

Furthermore, Governor Sejko emphasized that the fall in inflation in 2024 Q2 was relatively rapid, dictated by the increase in the supply of food items in the regional markets and in the domestic market, so the Bank of Albania estimated that the easing of monetary policy stance is expected to create more appropriate monetary conditions in meeting the objective of price stability.

The Head of the IMF Mission stated that this current monetary policy stance is adequate and consistent with the main objective of the Bank of Albania: guaranteeing price stability in the country. Also, she highlighted that monetary policy should continue to remain flexible, being continuously guided by new information on economic and financial developments in the country.

Ms Weber said that the further progress of financial reforms undertaken over the years will continue to refine the supervisory and regulatory structure, promoting the development of financial markets, strengthening consumer protection, as well as guaranteeing the protection of the banking system. However, she emphasized that not undermining the independence of the Bank of Albania remains in any case an essential prerequisite for safeguarding price stability and the financial stability of Albania.

Concluding, the Governor stated that the Bank of Albania is committed to preserving the stability and further development of the banking system, by guaranteeing a careful regulation and supervision, encouraging formalization and increasing the level of education and financial inclusion, and supporting European integration and rigorously following the reforms that this process imposes.

In a longer-term perspective, the Bank of Albania deems that the strengthening of growth pace and sustainability of Albania poses the continuation of structural reforms.

In this view, the interlocutors stressed the importance to continue to monitor the economic and financial situation, as well as coordinate the policies of Albanian authorities by undertaking the necessary measures in timely manner.

Concluding, Ms Weber thanked the Albanian authorities for the hospitality and the close cooperation offered during the visit.