PRESS RELEASE
Governor Sejko attends the Central and Eastern European Forum organised by Euromoney

On 16-17 January 2018, Euromoney hosted in Vienna, Austria, the annual Central and Eastern European Forum, bringing together prominent international personalities in the fields of politics and economy from the CEE countries.

This two-day Forum was conceived in the form of panels with specific topics, where attendees were invited to discuss the recent economic developments in the European countries and beyond. The panel dedicated to Albania and the one to central banks was particularly important.

The Governor of the Bank of Albania, Mr Gent Sejko; the Deputy Minister of Finance and Economy, Mr Erjon Luçi; the Chief Executive Officer of the National Commercial Bank, Mr. Seyhan Pencabligil and the General Director of Finance in Motion, Mrs Elvira Lefting participated in the panel dedicated to Albania. This panel addressed a number of key areas related to fiscal policy and its impact on the economic growth of the CEE countries.

Governor Sejko presented an overview of the recent economic and financial developments in Albania, and informed the attendees on the main challenges that the Albanian economy faces, in the framework of macroeconomic policies and structural reforms necessary to promote economic growth and improve the business environment, for attracting foreign investments in Albania.

In his remarks, Governor Sejko highlighted three key messages. First, the Albanian economy is firming up and its growth prospects are positive, also thanks to the prudential framework of macroeconomic policies and the serious engagement of the authorities to continue the structural reforms. Second, the Albanian financial system is sound and the main parameters of its operation are improving. However, this system should be more realistic and forward-looking in promoting lending and more ambitious in developing new segments of the financial market. Finally, highlighting the positive prospect of economic growth, underscoring the competitive advantages offered by Albania in terms of natural resources, its favourable geographical position, as well as the growing stability offered by the European Union membership process, Governor Sejko urged attendees to increase their attention towards Albania as an appropriate businesses and investments destination.

The panel of the Governors of South East Europe, moderated by Mr Richard Kemmish, Adviser of Euromoney Conferences, took place in the second day of the Forum. Mr Ewald Nowotny, Governor of the National Bank of Austria and member of the Governing Council, European Central Bank was the keynote speaker

The panellists included the Governor of the Bank of Albania, Mr Gent Sejko; the Governor of the National Bank of Croatia, Mr Boris Vujèiæ; member of the Governing Board of the National Bank of the Czech Republic, Mr Vojtìch Benda; the Deputy Governor of the National Bank of Romania, Mr Liviu Voinea.

The participants discussed important topics related to the economies of the South East Europe countries, as well as dealt more specifically with issues of central banking like: the impact of the monetary policy, financial stability, inflation and the interest rate, virtual currency etc.

In his discussion, Governor Sejko focused on the impacts of the monetary policy pursued by the European Central Bank and the Federal Reserve on the CEE economies. In this framework, he highlighted that the predicted normalisation of the monetary policy by the main central banks in the world is not expected to have an adverse impact on the Albanian economy and finances. According to him, the supervisory and regulatory framework of the Albanian financial system has improved significantly; its ability to withstand shocks has grown, while its level of liquidity is more than adequate to support the growth needs of Albania. However, he emphasised that the Bank of Albania remains engaged in monitoring the movements of the monetary policy in peer institutions, and in assessing their impact in Albania.

Also, in the framework of this panel’s discussions, Governor Sejko expressed his opinion on the reasons for the low inflation, stressing his belief that, despite shocks and the dimensions of the challenge they will be faced with, the central banks have the right theoretical equipment and sufficient operational instruments to meet their inflation targets. In this context, he summarised the measures and results of the monetary policy pursued by the Bank of Albania, highlighting the positive role that the easing monetary policy had in promoting economic growth, in creating the preconditions for returning the economy in equilibrium, as well as in maintaining and strengthening financial stability.

In conclusion, Governor Sejko also pondered on the role and the implications of the continuous financial innovation, in particular the expansion of cryptocurrencies, reiterating the position of the Bank of Albania that these instruments are not substitutes of the traditional currency, but unregulated and un-guaranteed alternative investments, the use of which requires maximal care by all the economic agents.

During this Forum, Governor Sejko met with representatives of the European Bank for Reconstruction and Development (EBRD), senior officials of central banks, as well as representatives of various commercial banks.