PRESS RELEASE
Governor Seiko attends the 2018 Annual Meetings of the International Monetary Fund and the World Bank Group

On 12-14 October 2018, Mr Gent Sejko, Governor of the Bank of Albania, in the capacity of the Governor of the Republic of Albania at the IMF, attended the 2018 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG), in Bali, Indonesia.

These meetings represent a high level forum which brings together the most senior decision-makers of IMF and the WBG, and governors and ministers of finance of the member countries in these international financial institutions, to discuss about the latest developments in the global economy.

In its Communiqué, the IMF's International Monetary and Financial Committee states that: “The global expansion remains strong. Growth is projected to be steady in the near term and moderate thereafter. However, the recovery is increasingly uneven, and some of the previously identified risks have partially materialized. Overall, risks are increasingly skewed to the downside amid heightened trade tensions and ongoing geopolitical concerns, with tighter financial conditions particularly affecting many emerging market and developing countries. Policy uncertainty, historically high debt levels, rising financial vulnerabilities, and limited policy space could further undermine confidence and growth prospects”.

Albania was represented in the Annual Meetings 2018 by a joint delegation of senior officials of the Bank of Albania and of the Ministry of Finance and Economy.

During the IMF-WBG Annual Meetings 2018, Governor Sejko had several important meetings with prominent personalities of international finance. Amongst others, from the IMF: Mr Tao Zhang, Deputy Managing Director of the IMF;  Mr  Alessandro Leipold, Executive Director for Albania’s constituency at the IMF; Mr  Poul Thompsen, Director of the European Department at the IMF; from the WBG: Mr  Cyril Myller, Vice President for Europe and Central Asia, Ms  Linda van Gelder, Country Director for the Western Balkans Region of the World Bank Group centred in Vienna,  Ms Wiebke Schloemer, Regional Director for Europe and Central Asia, International Financial Corporation (IFC); as well as with senior representatives of Deutche Bundesbank, and other international financial institutions.

During these meetings, Governor Sejko presented an overview of the Albanian economic and financial situation. He emphasized that the economic activity in Albania has continued to improve and iterated the commitment of the Bank of Albania to support the further economic growth and development.

Governor Sejko introduced the measures undertaken by the Bank of Albania, as the accommodative monetary policy, accompanied with simulating macroprudential policies, aiming at the acceleration of the economic activity and the maintaining of financial stability in Albania. He highlighted that the Bank of Albania is committed to providing all the necessary support, through the continuous monetary stimulus, with a view to boosting the future economic activity and the returning of inflation to target.

Regarding the banking system, Governor Sejko pointed out that the system has very good financial indicators as well as adequate capitalisation and liquidity levels. The further decline of non-performing loans ratio to 12.9%, the lowest level in the last years, is a rather positive sign, which paves the way for the increasing presence and contribution of the banking system in economy and for the further boosting of a sound credit.

Governor Sejko stated that the banking system is under a consolidation process and ensured the IMF and WBG representatives that the Bank of Albania, in full compliance with its legal mandate, will correctly and rigorously carry out its regulatory and supervisory role, by guaranteeing the new actors in the market to fully comply with the determined regulatory and requirements, without jeopardising the financial stability of Albania.

Representatives of the IMF and WBG commended the positive role and policy implemented by the Bank of Albania, contributing to the development and macroeconomic stability of Albania. In particular: the implementation of an accommodative monetary policy harmonised with fiscal consolidation; the interventions in foreign exchange market to maintain inflation target; and the continuing attention to safeguard the financial stability, were highlighted as rather necessary and adequate actions, which are undertaken by the Bank of Albania.

They emphasised that the Albanian economy continues to pursue a positive trajectory. Meanwhile the addressing of main challenges it faces is rather important and remains a priority. Also, the continuation of the work to further improve business climate, the encouragement of the domestic and foreign investments, as well as the increase of efficiency and expansion of economic potential are rather crucial in this regard.  

The interlocutors stated that Albania has shown to be oriented towards normalisation and enhancing confidentiality. It is taking the necessary steps that affect the strengthening of economic stability.

In this view, the downward trend of non-performing loans is one of the most significant indicators - as pointed out - however, in addition to the continuing encouragement of economic activity, it is rather important the country and the institutions be well prepared and react timely and properly, in case of shocks arising from both internal and external factors.

Governor Sejko thanked the representatives of the IMF and WBG for the support and assistance provided to the Bank of Albania and the other institutions of the country.

Also, the delegation had the opportunity to meet with counterparts from a number of countries discussing on the further development of bilateral relations.

In the framework of these meetings, Governor Sejko attended the meeting of the Monetary and Financial Committee, as well as the G30 seminar.  He also participated in the meetings of ministers and governors of members countries of some of the constituencies of the IMF.

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