BANK OF ALBANIA
Governor presents the 1999 Annual Report to the Parliamentary Commission of Economy, Finance and Privatization
Publication date: 04.05.2000
The Annual Report of Bank of Albania, already at your disposal deals in detail the Albanian economy developments in the monetary area, exchange rates, bank supervision, payments system and the central bank institution, itself.
After the crisis in the first half of 1997 and the successive implementation of the six-month program on domestic stability, Albania signed with IMF the ESAF-2 arrangement. Central elements of this arrangement were still the
assurance of rapid growth rate of domestic economy, inflation decrease, disciplination of fiscal developments to reduce budget deficit especially that financed on domestic resources, development of institutional reforms to
consolidate any achievement in macroeconomics area as well as the improvement of the legal and regulatory
Economic developments during 1998 were within the established objectives. On the whole, the established quantitative targets were achieved. It was ensured a better disciplination of fiscal developments first cited in the compliance of all limits set on budget deficit. Above all, inflation was managed to reduce from 42 per cent at the end of 1997 to 8.7 less than the established objective, at the end of 1998. This reduction was on no doubt attributed to the important role conducted by the tight and prudent monetary policy practiced by Bank of Albania. It could be said that year 1998 serves as a starting point for the economic recovery of the country. Based on the relatively stable economic and political situation inherited from 1998, 1999 objectives were still defined ambitious.