Governor Sejko attends 2015 Annual Meetings of the World Bank Group and the International Monetary Fund

Publication date: 13.10.2015


 On 9-11 October 2015, Gent Sejko, Governor of the Bank of Albania, in capacity of the Governor of the Republic of Albania in IMF, attended the 2015 Annual Meetings of the World Bank Group and International Monetary Fund, held from 9 to 11 October in Lima (Peru).

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The Annual Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) represent a high-level forum bringing together the top level decision-makers in IMF and WBG, central bankers and the ministers of finance of the member countries in these international financial institution, to discuss the latest developments in the global economy. The Communiqué of the Thirty-Second Meeting of the International Monetary and Financial Committee (IMFC) highlighted that the global recovery continues, but growth remains modest and uneven overall; while uncertainty and financial market volatility have increased, and medium-term growth prospects have weakened. The growth prospects differ across emerging market and developing countries, the overall outlook is negatively affected by uncertainties around commodity prices and the unfavourable global financial conditions. Risks continue to be high, albeit many developing countries have adopted a lot of defending policies and measures.  Many emerging market economies are exposed to tighter financing conditions, slowing capital inflows, and currency pressures amid high private sector foreign currency indebtedness. In many advanced economies, the main risk is assessed the decline of  the already low growth.  The high levels of debt continue to remain one of the main concerns.

The Albanian delegation was represented by the Governor of the Bank of Albania, Mr Gent Sejko and the Minister of Finance, Mr Shkëlqim Cani.

During the Meetings, the Governor of the Bank of Albania, Mr Sejko held several important meetings with prominent personalities of international finance, from the IMF: Mr Min Zhu, Deputy Managing Director of the International Monetary Fund; Mr Carlo Cottarelli, Executive Director for Albania; Mr Poul Thompsen, Director of the European Department at the IMF, Mr Pete Dattels,  IMF Financial Counsellor and Director of Monetary and Capital Markets Department; and from the World Bank Group: Mr Cyrill Myller, Vice President, Europe and Central Asia Region, Mr Patrizio Pagano Executive Director for Albania; Ms Ellen Goldstein, Country Director for Southeast Europe, Europe and Central Asia.

During these meetings, Governor Sejko made an overview of the Bank of Albania's measures on monetary policy and financial stability in Albania. The accommodative policy implemented by the Bank of Albania is accompanied with simulating macro prudential policies for the banking system, aiming at a larger impact on the economic growth and financial stability.  The IMF and WB Group's representatives assessed the Bank of Albania's role and policies in positive terms, contributing, in turn, to the development and macroeconomic stability of Albania.

With regard to the steps to be undertaken to accelerate the future economic activity of Albania, Governor Sejko highlighted that the Bank of Albania is committed to provide all the necessary support, through the continuous monetary stimulus.
Special attention was given to the inter-institutional action plan and the measures of the Bank of Albania to encourage lending and reduce non-performing loans.  The Governor and IMF's representatives shared the opinion that the high level of non-performing loans affects both the financial stability and the funding of economy.  Hence the solution of this issue assumes a special importance, not only to the banking system, also to the whole economy. The Albanian banking system is assessed as financially sound, with high capitalisation and liquidity levels. 
The measures undertaken by the Government in the field of energy and fight against informality were also discussed in these meetings. The IMF and WB Groups' representatives assessed these reforms positively, considering them two main aspects, which will provide positive impact in mitigating the budget risks. 

Also, Governor Sejko held meetings with governors from other countries: Mr Stefan Ingves, Governor of the Bank of Sweden; and Mr Erdem Basçi, Governor of the Central Bank of the Republic of Turkey. The advancement of bilateral relationships focusing on technical assistance for specific issues to the Bank of Albania, were discussed in these meetings. 

Governor Sekjo attended the meeting of the IMF Monetary and Financial Committee and the joint meeting of the ministers and governors of the IMF constituency: Italy, Greece, Portugal, Albania, Malta and San Marino.

During the stay in Lima, upon the invitation of  the Chairman of the Board of Trustees of Group of Thirty (G30) Mr Jacob Frankel, (former Governor of the Bank of Israel) and of the Chairman of the Group of Thirty (G30), Mr Jean-Claude Trichet (former President of European Central Bank), the Governor of the Bank of Albania, Mr Gent Sejko, attended the Annual International Banking Conference. This annual event is held in the framework of IMF and WB annual meetings and provides a platform for informal discussions, among the most prominent personalities in the banking filed and academic world. The acceleration of the global economic growth was the main topic of this event. On this topic, the discussions were oriented by the presentations of  Mr Stanley Fischer, Vice Chairman of the Board of Governors of the Federal Reserve System, and Mr Haruhiko Kuroda, Governor of the Bank of Japan, Ms Sabine Lautenschläger, Member of the Executive Board of the European Central Bank and by Mr Yi Gang, Director of the State Administration of Foreign Exchange and Deputy Governor of the People's Bank of China.