PRESS RELEASE
Governor Sejko receives the Head of Regional Economic Service for the Western Balkans, Embassy of French Republic, Mr Pierre Grandjouan

On 16 October 2024, the Governor of the Bank of Albania, Mr Gent Sejko, received the Head of Regional Economic Service for Western Balkans, Embassy of French Republic, Mr Pierre Grandjouan, resident in Belgrade

Governor Sejko introduced Mr Pierre Grandjouan with the economic developments in Albania, highlighting that economic growth has settled on a positive development trajectory and the main economic balances are expected to strengthen in the next years.  

The Governor said that inflation has been declining rapidly, in turn marking a complete recovery from the shock experienced from the elevated prices in international markets.  Bank of Albania has implemented a prudential monetary policy stance, by analysing inflation data and has reacted through its stance to preserve economic growth.  This approach has resulted quite effective.

The rather flexible monetary policy has aimed at not harming the positive development trends of Albania, being carefully harmonised with the financial developments and fiscal policy direction. Inflation and expectations on inflation - as a result of this reaction - stay already closer to our target, while forecasts for the future are positive. Currently, inflation in Albania has the lowest rated compared to the region and the Europe.

Regarding the financial system, Governor Sejko said that the system has very good adequate capitalisation and liquidity levels. Referring to the overall landscape of the banking sector, the Governor pointed out two core elements: lending growth and the improvement of the non-performing loans ratio.

The Head of Regional Economic Service for the Western Balkans, Mr Grandjouan, thanked Governor Sejko for the meeting and praised the continuous contribution that Bank of Albania provides for safeguarding the macroeconomic stability of the country.

In addition, Mr Grandjouna congratulated Governor Sejko for the official opening of negotiations for the chapter clusters with the European Union, which marks a historic milestone in path towards the EU integration process.

Mr Grandjouan commended the contribution and important role of the Bank of Albania with regard to macroeconomic and financial stability. He underlined that the implemented policies by the Bank of Albania has yielded a positive impact, by maintaining the lowest inflation rate and the highest economic growth in the region.  Also, He added that the free-floating exchange rate regime is rather adequate as the demand and supply are determined by the market itself.

The interlocutors, in conclusion, shared the same views about the perspectives of advancing the economic cooperation between the two countries, through potential projects in various economic sectors, as: the financial, infrastructural ones, as well as on the growth of foreign investments in Albania.  

Also, Governor Sejko and the Head of Regional Economic Service for the Western Balkans concurred that both Bank of Albania and Banque de France will continue to collaborate in fields, such are: legislation convergence with the European standards, central banking governance, etc. Banque de France will continue to support the Bank of Albania towards strengthening institutional capacities and adopting the international standards on central banking, until Albania becomes a full member in the European family.