PRESS RELEASE
Governor Sejko meets representatives of the International Monetary Fund mission

On 17 July 2018, the Governor of the Bank of Albania, Mr Gent Sejko, met at the Bank of Albania’s premises with representatives of the International Monetary Fund (IMF) mission, led by Mr Jan Kees Martijn, the newly appointed IMF mission chief for Albania.

The meeting was held in the framework of the continuous sharing of opinions and inter-institutional dialogue.

Governor Sejko presented an overview on the main economic developments focusing on the financial and banking sector in Albania. The Governor said that the macroeconomic environment is stable and provides adequate premises for a positive economic growth. Official data show economic growth posted 4.45% in 2018 Q1. This growth is mainly based on the upsurge of electricity production and export.  Governor Sejko pointed out the developments in tourism and agriculture, which are the potential sectors expected to have an important role in the country’s economic growth in the future.

Regarding the financial developments in Albania, the Governor underlined that the financial system is characterised by high liquidity levels and is well capitalised.

Very important, stated Governor Sejko, are the measures undertaken by the Bank of Albania to maintain and guarantee price stability in Albania. In this view, the Governor informed the interlocutors on the decisions of the Bank of Albania on inflation, the exchange rate, highlighting that the intervention of the Bank of Albania in the domestic foreign exchange market has provided positive effects, and has been positively received by the market agents.

Maintaining inflation at 3% is the main target of the Bank of Albania. In this regard, Governor Sejko stated that, according to the Bank of Albania's forecasts, inflation is expected to return to target within 2020.  The Bank of Albania is implementing an accommodative monetary policy which is positively transmitted to the financial markets.

The Governor introduced the positive results in the framework of reducing non-performing loans. The latest data show non-performing loans dropped at 13.3% in May 2018. He introduced also the newest project of the Bank of Albania, the so-called “Tirana Approach”, which aims at finding a solution for non-performing loans for large borrowers.

The consolidation of the banking system and the entry of new actors in the market were also addressed in this meeting. Governor Sejko stated that these changes are taking place in accordance with the laws and regulations in force.

The modernisation of the payment systems and the entry into force of the Law “On the recovery and resolution of banks in the Republic of Albania'’, were also discussed in the meeting.

On his side, Mr Jan Kees Martijn commended the work of the Bank of Albania and the successful collaboration between the two institutions. He emphasized that the economic policies and the implemented structural reforms over the years have led to notable developments in Albania.  

Governor Sejko, in conclusion, reiterated his appreciation for the continuous technical support by the International Monetary Fund for the Bank of Albania.