PRESS RELEASE
Meeting of the Governor of the Bank of Albania, Mr. Ardian Fullani with the World Bank and the International Monetary Fund, during the Spring Meetings, April 2005

Mr. Ardian Fullani, the Governor of the Bank of Albania, simultaneously the Governor of Albania at the International Monetary Fund, held numerous meetings with senior representatives of the International Monetary Fund, FSVC and FDIC during his stay at the United States of America.

During the meetings, Mr. Fullani acquainted the interlocutors with current developments of Albanian economy, problems and prospects of the country's development, and measures taken in terms of European integration process. In this framework, Mr. Fullani reconfirmed the commitment of the Bank of Albania to: maintain inflation within the 2-4 per cent band; further consolidate and develop the banking system; take concrete measures for financial sector's development. The Governor of the Bank of Albania made a summary of incentives taken by the Bank of Albania in cooperation with the Ministry of Finance to reduce cash in economy. Mr. Fullani presented the commitment of the Bank of Albania, in cooperation with the World Bank, for the duly completion of Albanian Electronic Clearing House project, which constitutes a significant contribution to establishing a modern payment system. Also, on behalf of the Bank of Albania, Mr. Fullani was committed to establishing the Credit Information Bureau, a project which will be implemented in cooperation with the World Bank.

In all the meetings, the role of the Bank of Albania was positively assessed in terms of macroeconomic stability and steps taken by it for consolidation and development of the banking and financial sector. The senior representatives of the above institutions expressed their willingness to further assist the Bank of Albania in the future with projects and technical assistance.

In the following, you will find a brief summary of the main issues discussed in the meetings.

Meeting with Ms. Anne O. Krueger, First Deputy Managing Director of the International Monetary Fund

The Governor expressed his thanks to Ms. Krueger for excellent relationships and fruitful cooperation with the IMF, and evaluated the good work carried out by the IMF mission, headed by Mr. Escolano in supporting the reforms. Ms. Krueger evaluated the positive accomplishments of Albania, the relationships of the IMF with the Bank of Albania during the last 15 years and the current structural reforms.

The Governor ensured Ms. Krueger on the continuation of reforms, raising the responsibility and commitments to meeting the objectives, maintaining the Bank of Albania independence through transparency, responsibility, seriousness and cooperation and better communication with relevant institutions.

Meeting with Mr. Michael C. Deppler, Director of the European Department, IMF

The Governor Fullani acquainted Mr. Deppler with the Bank of Albania commitments to extending and expanding Albanian financial markets, being focused mainly on reforming treasury bills market. Fundamental improvement of economic statistics was another point emphasized by Mr. Fullani, as an issue of priority for Albania. Also, the Governor expressed his personal commitment to carry out necessary improvement in the organizational structure, in the framework of modernizing the Bank of Albania and increasing its human capacities in accordance with international standards.

Mr. Deppler confirmed once more the support of the IMF on the process of reforms and transition in Albania and was committed to increasing the technical assistance of the IMF.

Meeting with Mr. Enoch, Director of the Monetary and Financial Systems Department, IMF

In this meeting, the Governor, interalia, expressed his thanks on the assistance given for the organization of various conferences and workshops, as was the last workshop organized by the Bank of Albania in cooperation with the IMF on Stress Testing, with the presence of representatives from 17 different countries of the world.

Mr. Enoch expressed his readiness to assist the Bank of Albania even in the future, adding the assistance for foreign reserve management in accordance with international techniques and standards to current areas of cooperation.

He also expressed the willingness to assist the Bank of Albania in organizing and holding the open forum on "Central Bank Governance", that will be held in the beginning of December 2005.

Meeting with Mr. Pier Carlo Padoan, Executive Director for Albania (IMF)

In this meeting, the Governor made a presentation of measures being taken in deepening the reforms for further expanding and extending the financial market. Steps being taken by the Bank of Albania in cooperation with the Ministry of Finance, commercial banks and Securities Commission in terms of restructuring the primary Treasury bill market were mentioned here.

Mr. Padoan appreciated the role of the Bank of Albania in informing and organizing this market.

Mr. Padoan assessed as successful the historical relationships of the IMF with Albania, emphasizing the importance of establishing reliable institutions and the coordination of their work for meeting the objectives of strategies for the country's development. In this aspect, the Governor informed Mr. Padoan on the incentive undertaken by the Bank of Albania and the Ministry of Finance on cash reduction in economy.

The taking of measures, the encouragement of market to use credit cards, and the accomplishment by the Ministry of Finance of a "pilot" program on putting and applying recording cases of cash movements were expected with much interest.

Meeting with Mr. Julio Escolano, Chief of the IMF Mission for Albania

In this meeting, there was discussed about the Albanian economy performance in terms of achieving macroeconomic stability and meeting the objectives of the country's Economic and Social Development Strategy. Interalia, the Governor acquainted the Chief of the IMF Mission with the work of the Bank of Albania in terms of structural improvements in statistics and information technology area, the measures being taken by the Bank of Albania in terms of extending and expanding the financial market. Also, the Governor presented even the need of increasing the efforts by all interested actors for having a country rating for Albania, raising its chances for access in international financial markets.

Further, the meeting was focused on the nature of the next agreement to be signed by Albania, the IMF and the WB. This agreement, which is expected to be signed during the second half of the year, will continue to be focused on maintaining and consolidating macroeconomic stability in general and price stability in particular, stressing at the same time the continuation of reforms in Albania in terms of politics and fiscal administration, financial development, legal system, administrative practices, etc.

Meeting with Mr. Biaggio Bossone, Executive Director for Albania and Mrs. Orsalia Kalantzopoulos, Country Director, World Bank

In these meetings, where the Governor of the Bank of Albania and the Minister of Finance were present, both parties evaluated the good inter-institutional cooperating relationships.

There was discussed in details in the meeting on the nature and modalities of the next agreement. According to discussions, this agreement is expected to increase the focus on regional development projects, as a concrete measure in terms of poverty reduction and combat against the causes of domestic migration. The Governor valued the WB commitment for the implementation of various projects of the Bank of Albania, and requested financial support for the establishment of Credit Information Bureau.

Meeting with Mr. Richard Spillenkothen, Director of the Division of Banking Supervision & Regulation at Federal Reserve (FED).

In this meeting was discussed about the country's economic developments, banking sector development and the Bank of Albania's work for developing and consolidating it, steps taken for financial sector development, cooperation with regional banks on banking supervision, legal improvements in banking system law at the Republic of Albania, supervision of non-bank institutions, organization of various national and international workshops, etc.

Mr. Spillenkothen expressed the willingness of Federal Reserve to provide technical assistance to the Bank of Albania.

Meetings with Mr. Andrew Spindler, Executive Director of the Financial Services Volunteers Corps (FSVC).

The Governor expressed his thanks for the good cooperation with the FSVC in terms of technical assistance given to the Bank of Albania departments, and ensured Mr. Splinder on continuation of this cooperation.

Mr. Splinder ensured Mr. Fullani that the FSVC will go on consultancy in sectors and departments where the Bank of Albania is mostly in need of, finding professionally good experts. He also stated his willingness to provide technical assistance even in drafting policies and strategies, not only in technical levels.

Meetings with Mr. John M. Reich, Vice Chairman of Federal Deposit Insurance Corporation (FDIC) and Mr. Robert W. Russel, Deputy to the Vice Chairman of FDIC

This meeting discussed about issues of banking system consolidation, development of deposit insurance schemes, creation of Deposit Insurance Agency. In this aspect, the Governor requested technical assistance from the FDIC in terms of management, improvement of the law on deposit insurance. This assistance may be provided through the FSVC, which has a good experience in this area.
Mr. Russel expressed his willingness to continue the cooperation initiated, as well as to provide technical assistance to the Deposits Insurance Agency of Albania.