BANK OF ALBANIA

PRESS RELEASE
Governor Sejko attends IMF and WBG Spring Meetings 2018 in Washington D.C.

Publication date: 23.04.2018

 

On 20-22 April 2018, Mr Gent Sejko, Governor of the Bank of Albania, attended the Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Washington D.C., USA.

Each year, the Spring Meetings bring together central bank governors, ministers of finance of member states and senior officials of international financial institutions.

498 IMG 0978

Albania was represented in the Spring Meetings 2018 by a joint delegation of the Bank of Albania - represented by Governor Gent Sejko, the First Deputy Governor Elisabeta Gjoni and other BoA senior officials - and the Ministry of Finance and Economy - represented by the Deputy Minister of Finance and Economy, Mr Erjon Luçi and other MoFE officials.

In its Communiqué, IMF's International Monetary and Financial Committee states that: “…Global growth has further strengthened and is increasingly broad-based, driven by a strong rebound in investment and trade. Risks are broadly balanced in the near term, but remain skewed to the downside beyond the next several quarters.  Rising financial vulnerabilities, increasing trade and geopolitical tensions, and historically high global debt threaten global growth prospects. Demographic headwinds and subdued productivity growth may reduce the potential for higher and more inclusive growth going forward.”

 Takimi me Presidentin e Bankës Kombëtare të Gjermanisë, Dr. Jens Weidman...

 IMG 0918

During the IMF-WBG Spring Meetings, 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; Ms Anita Tuladhar, IMF Mission Chief for Albania;  and Mr Dong He, Deputy Director, Monetary and Capital Markets Department, International Monetary Fund.  From the World Bank Group, he met with 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, Mr Patrizio Pagano, Executive Director for Albania’s constituency at the WBG; Mr Marcelo Giugale, Advisor at the WBG; Ms Arunma Oteh, Vice President and Treasurer of the World Bank, etc.

In addition to the meetings with the representatives of IMF and WBG, Governor Sejko had important meetings with: Ms Elke König, Chair of the Single Resolution Board; Mr Jens Weidmann, President of Deutsche Bundesbank; and Mr Murat Çetinkaya, Governor of the Central Bank of the Republic of Turkey. The interlocutors commended the so far inter-institutional relationships and discussed on enhancing the mutual cooperation in the future. During the meetings, Governor Sejko introduced the interlocutors with the latest developments in the Albanian economy, focusing on the outlook of economic growth, as well as on banking sector developments in Albania.

Takimi me përfaqësuesit e Bankës Botërore

He highlighted that economic growth in Albania is on a positive development trajectory; meanwhile, the implementation of the accommodative monetary policy has supported the growth of the economy and the increase in employment, wages and inflation. In relation to the latest developments on consumer prices, Mr Sejko stated that the Bank of Albania has placed its focus on its main objective, maintaining price stability. Inflation has been gradually rising; therefore, it is expected to return to target within 2019.

He added that the Bank of Albania, in its role as the monetary authority, has contributed to supporting stable economic growth and guaranteeing financial and macro-economic stability in Albania. With regard to the steps to accelerate the future economic activity of Albania, Governor Sejko highlighted that the Bank of Albania is committed to providing all the necessary support, through the continuous monetary stimulus. The Governor also emphasised that the coordination of the monetary policy with the fiscal policy is crucial for strengthening the macroeconomic stability and ensuring sustainable growth.

Regarding the banking system in Albania, Governor Sejko stated that the system is characterised by good financial indicators; he emphasised that boosting credit and continuing with the plan of measures for reducing non-performing loans remain important commitments of the Bank of Albania for the future. As a result of the implementation of this plan, the non-performing loans ratio fell at 13.2%, in December 2017.

Takimi me z

Another important issue was the commitment of the Bank of Albania to cooperate with other institutions in Albania to increase the use of the domestic currency in the domestic economy. The Governor highlighted that the main purpose of this commitment is to improve monetary policy effectiveness and to reduce risks to financial stability and fiscal policy.

Governor Sejko stated that the Bank of Albania will continue to improve its supervisory role, proactively approach banking regulation, increase the security of the banking system and promote the development and efficient functioning of the payment systems, in line with international standards.

Takimi me z  Poul Thomsen Drejtor i Departamentit Evropian prane FMN

Representatives of the IMF and WBG commended the positive role and the policy implemented by the Bank of Albania, which has contributed to the macroeconomic development and financial stability of Albania. Also, the IMF and WBG senior representatives encouraged the Bank of Albania to further commit on the plan of measures for reducing the non-performing loans, boosting credit and promoting the use of the national currency.

The international officials highlighted that Albania should take advantage of the economic growth trend, the financial stability and the safe financial system, to attract foreign investments, in order for economic growth to be sounder in the long term.

In these meetings, the IMF and WBG representatives welcomed the positive recommendation of the European Commission to open EU accession negotiations with Albania. They stated that the continuation of structural reforms in Albania is particularly important to improve the business environment and to make progress in the integration process.

498 Foto e Grupit

In the framework of these Meetings, Governor Sejko also participated in the plenary session of the IMF's International Monetary and Financial Committee and the Executive Forum organised by the World Bank Group for policy-makers and senior officials.