PRESS RELEASE
The Governor of the Bank of Albania, Mr. Shkëlqim Cani, meets with the Mission of the International Monetary Fund

The Governor of the Bank of Albania, Mr. Shkëlqim Cani met today with the Mission of the International Monetary Fund, headed by Mr. Julio Escolano - the new chief of the Mission - who was accompanied by Mr. Jan Peter Olters, permanent representative of the IMF in Tirana.

The meeting focused mainly on issues such as macroeconomic development, monetary policy, banking system, foreign exchange, interbank payment system, etc.

Governor Cani stated that the inflation rate throughout 2003 was 3.3, a figure thus within the targeted range of 2-4 percent. The economic growth was estimated to be about 6 percent. The 2004 forecasts are believed to remain at the same values.

Following the meeting, the Governor said that the domestic currency had appreciated against the usd and euro, mainly due to differences between interest rates in lek and those in foreign currency.

The banking system performance following the Saving Bank's privatization was another important issue referred to. The Governor said: "At present, the banking system seems consolidated and does not face any serious threats. The Supervisory Council is going to dwell upon two important decisions related to shifting the Savings Bank ownership from the Ministry of Finance to the Raiffeisen Bank, allowing the Savings Bank to restart its lending activity following a 6-year suspension. However, the Bank of Albania will follow closely the developments and structural changes this privatization will bring about, and it will keep up with the banking supervision standards based on the supervision development plan, which has been designed with the World Bank assistance."

The Mission was introduced with the positive performance of Real Time Gross Settlement project as well as with the commitment of the Bank of Albania, second-tier banks, the Ministry of Finance and that of the World Bank to implementing Automated Clearing House project in 2004.

Cash replacement and introduction of banking transactions in economy was also widely discussed in the meeting. The Governor emphasized the Bank of Albania' willingness to co-operate with other institutions - mainly the Ministry of Finance and the Ministry of Economy - supported by a stronger banking infrastructure from second-tier banks - in successfully accomplishing the "Beyond cash" program. One of the fist steps of this program is expected to be the payment of public system employee's wages and public company's bills through banks.

The Mission of the IMF will continue its technical level meetings at the Bank of Albania until April 28, 2004, when the concluding meeting will be held.