PRESS RELEASE
Governor Sejko attends the 2022 Annual Meetings of the IMF and the WBG

On 12-16 October 2022, the Governor of the Bank of Albania, Mr Gent Sejko, attended the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WB), in Washington, DC.

These meetings are a high-level forum bringing together top level decision-makers in the IMF and the WBG, central bankers and ministers of finance of respective member countries, to discuss the latest developments in the global economy.

A joint delegation of the Bank of Albania and the Ministry of Finance and Economy represented Albania in the Annual Meetings of the IMF and the WBG.

During the Annual Meetings, Governor Sejko had several important meetings with prominent personalities of international finance. Amongst others, from the IMF: Mr Domenico Fanizza, Executive Director for Albania; Mr Federico Giammusso, Next Executive Director for Albania; Mr Alfred Kammer, Director of the European Department; Ms Yan Sun, Mission Chief of the International Monetary Fund for Albania; and Mr Udaibir Das, Adviser at the Monetary and Capital Markets Department. From the World Bank Group: Ms Anna Bjerde, Vice President for Europe and Central Asia; Mr Matteo Bugamelli, Executive Director for Albania; Mr Clay Lin, Director and Chief Information Security Officer; Mr Junaid Kamal Ahmad, MIGA”s Vice President for Operations; Mr Alfonso Garcia Mora, Regional.

Vice President for Europe at the International Finance Corporation (IFC); and Ms Rana Karadsheh, Regional Director for Europe at the International Finance Corporation (IFC).

Governor Sejko attended a very important meeting on the energy crisis and its socio-economic impact in the Western Balkans, organised by the World Bank, under the auspices of the Director of Energy Sector and the World Banks’ Regional Director for Western Balkans.

During these meetings, Mr Sejko presented an overview of the Albanian economic and financial situation. The Albanian economy has withstood the multi-shocks in the recent years, as the earthquake of 2019, and the COVID-19 pandemic.  Despite the limited direct exposure of Albania to Russia - Ukraine conflict, Albania is facing the challenges arising from the surge in international prices of energy and the economic slowdown in Europe. The Governor highlighted that the economic activity in Albania has continued to improve and reiterated the commitment of the Bank of Albania to provide all the necessary support, in this regard.

Next, Governor Sejko pointed out that inflation continues to remain the main challenge to the macroeconomic stability, as well as to the sustainable and long-term economic growth of Albania, notwithstanding the Albanian economy will continue to grow. Inflation has increased considerably and is expected to decrease during 2023. The Bank of Albania is mainly focusing on the mitigation and the return of inflation to its target. In this context, the Governor stated that the beginning of monetary policy normalisation has been necessary to mitigate this indicator, while increased diligence is being paid on higher interest rate to safeguard financial stability.

The IMF and the WBG representatives supported the change of the monetary policy stance undertaken by the Bank of Albania, and emphasised that the monetary conditions are still accommodative, notwithstanding the successive rise of the key interest rate.

The Governor added that the overall stability, the sound balance sheets of households and enterprises, and the support of banking sector - which appears sound, liquid and well-capitalised, with credit to the economy, will continue to underpin the economic growth. The continuous reforms undertaken in recent years have resulted successful. The consolidated banking sector, the improved credit environment, the thoroughly developed financial markets and payment systems, coupled with the initiatives to boost the use of national currency, have notably contributed in the qualitative improvement of the banking sector’s stability and efficiency.

The IMF and WBG representatives emphasised that the continuous efforts of the Bank of Albania in strengthening the rule and supervision, have supported the banking system to successfully withstand the successive shocks. The improved regulatory framework and supervision, in compliance with the EU standards provide the necessary tools for authorities to better manage the financial stability risks. In this regard, they encouraged the further continuation of efforts towards de-euroization of the economy, which enables a better monetary policy pass through and the preservation of the financial stability.

During the discussions, the interlocutors underlined that the addressing of the main challenges faced by the Albanian economy, such as, inflation, energy crisis, etc., triggers many duties to be considered by the authorities.

The IMF and WBG representatives added that the continuous investment in reforms which bolster and encourage the macroeconomic stability of Albania, the improvement of business climate, the increase of efficiency and competitiveness, the strengthening of human and institutional capacities, and the comprehensive development of infrastructure, is the only path towards a more rapid economic and social progress.

In this view, the Governor pointed out that the Bank of Albania supports and encourages the attention towards the structural reforms. The agenda of reforms, has already turned into a strong anchor in the negations process that Albania is performing in the framework of the European Union membership.

In these meeting, Governor Sejko thanked the representatives of the IMF and WBG for the continuous assistance these institutions have provided to the Bank of Albania and other institutions of the country, for the open share of views as well the fruitful and transparent discussions. “Overall, I see that both the Bank of Albania and the IMF share similar views on the challenges that lie ahead”. - said the Governor.

On their part, the IMF representatives pointed out and evaluated as very positive the strengthened professional capacities at the Bank of Albania, as well as their participation and contribution in the activities organised by the IMF.

Also, the delegation had the opportunity to meet with counterparts from a number of countries discussing on the further development of bilateral relations aiming at providing technical assistance on specific issues to the Bank of Albania.

In the framework of these meetings, Governor Sejko and the representatives of the Bank of Albania attended the plenary session of the IMFs’ International Monetary and Financial Committee; the plenary session of the IMF and the WB Annual Meetings, as well as the G30 seminar proceedings.

Also, the Governor of the Bank of Albania, Mr Gent Sejko, was invited to a breakfast meeting with Ministers of Finance and Central Bank Governors, organised by Mr Alfred Kammer, Director of the European Department at the International Monetary Fund.