PRESS RELEASE
The Bank of Albania Governor, Mr. Shkelqim Cani, meets with the IMF' s Technical Assistance Mission from Monetary and Financial Department

On Tuesday afternoon, dated February 17, 2004, the Bank of Albania Governor, Mr. Shkelqim Cani held a meeting with the IMF' Mission of Technical Assistance, headed by Mr. Karl Driessen.

Thanking them on the continuous and effective assistance to the Bank of Albania, the Governor Cani informed the IMF' s Mission on the main Bank of Albania challenges in monetary policy and operations, banking supervision, accounting, statistics and information and technology developments, European integration, etc.

The Governor stated that "the Bank of Albania is getting ready to adopt the new targeting regime".

"Though the Bank of Albania has maintained an annual inflation rate within the 2-4 per cent targeted band over the recent years, yet it has been more an issue of credibility than primary obligation of its monetary policy. However, the Bank of Albania experts are making efforts to achieve the above target in a medium-term period and therefore, the Mission' s technical assistance would be very worthy" stated Mr. Cani.

Also, an important issue being dealt with in this meeting was the development of a modern payment system and the reduction of cash used in economy. Mr. Cani stated "The Bank of Albania has just finished successfully the project of interbank payment system on high value payments, financed by the World Bank, implemented since January 30 of the current year. The qualified extension of operational capacities for an efficient and safe exchange of monetary values is the main goal, thus constituting one of the most important step of the Bank of Albania in deepening the Albania's financial reforms, fostering stability and enhancing efficiency of financial sector in general and banking sector in particular.

"At the same time, - went on the Governor, - the project of high value payment system will be followed by another project of low value payments and all this banking system evolution will be interwoven with the Bank of Albania campaign on replacing cash operations with banking transfers.

The banking system, already privatized and having the presence of an internationally known bank such as Raiffeisen, seems ready to support the Bank of Albania incentive to channel money through the banking system, not only by increasing the number of branches and banking products to clients, but also by reducing the banking service cost.

Also, the Mission's assistance in the area of banking supervision, application of international payments and accounting standards, application of monetary statistics standards, Bank of Albania's integration in European Monetary System, etc, is another convincing argument.

Mr. Driessen, appreciating the Bank of Albania performance in implementing the IMF' s assistance programs, stated "The Mission, during its stay along some days, will assist the Bank of Albania departments in all the issues and in problems of concern, up to details".

The Governor stated once more his appreciation on the IMF' s technical assistance and invited the IMF' s experts to be demanding while treating issues up to details with the department's heads and the Bank of Albania experts.