PRESS RELEASE
Presentation of the European Bank for Reconstruction and Development Transition Report 2016-2017

On 27 January 2017, the Transition Report 2016-2017 of the European Bank for Reconstruction and Development (EBRD) was presented at the premises of the Bank of Albania.

In his opening remarks, Mr Gent Sejko, Governor of the Bank of Albania, noted that the Transition Report represents an independent evaluation and a contemporary standard that helps judging objectively the progress of the reforms and the economic policies undertaken by the authorities, as well as highlights and documents professionally and reliably the economic, legal and institutional progress of relevant countries.

In the case of Albania, the Report evaluates positively the undertaken reforms and the economic policies. ' The conclusions of the report on economic developments and monetary and financial situation are similar to the analyses and conclusions of the Bank of Albania at the end of 2016. In concrete terms, the Albanian economy has accelerated the growth pace driven mainly by the accommodative monetary policy of the Bank of Albania and its effective pass-through to the economy. These factors, coupled with the further recovery of domestic demand will play a significant role in the further growth of economic activity during 2017.', the Governor said.

The report points to a topical issue present across all the countries in transition, pertaining the deepening of social inequality. ' I would like to take advantage of this opportunity to emphasise that the Bank of Albania and the banking system are paying particular attention to this. Our financial education programmes, informative publications on banking products and services, coupled with regulation, licencing, introduction and support for new payment and financial services technology and instruments, are aimed at enhancing financial inclusion and generating opportunities for financial access for all groups of the society. The Bank of Albania deems that more may be done with regard to designing and promoting financial products that satisfy better the needs of such groups.' stressed the Governor.

Also, the Governor concurred with the topics pondered in the Report as well as the findings presented related to non-performing loans. ' The Report points to the important fact that the banking system is liquid, well capitalised and capable to withstand shocks that may come from the external sector. It identifies non-performing loans as the main risk not only to the system's soundness but also to the monetary policy pass-through in credit growth for the private sector. The report assesses positively the coordinated plan of actions by the Bank of Albania in cooperation with the Government of Albania and international institutions, to address comprehensively and definitively the issues of non-performing loans.', he remarked.

Following, the representatives of the European Bank for Reconstruction and Development presented the EBRD Transition Report 2016-2017.

In conclusion, Governor Sejko thanked once again the EBRD for the important contribution and the concrete support with financial investments in key areas of the Albanian economy and invited the EBRD to continue to consider the great potential that Albania has to offer.

Governor Sejko: Opening address at the presentation of the EBRD's Transition Report 2016-2017

The Transition Report 2016-2017 of the European Bank for Reconstruction and Development (EBRD)