PRESS RELEASE
The IMF report is on financial system stability, not T-bill yield movements

Sir,

In reaction to your recent article on the Albanian Treasury-bill market of September 21, 2005, and your references to the International Monetary Fund (IMF), please let me state the following:

The IMF is an organization of 184 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty. This is done through policy advice, technical assistance, and various lending programs.

The IMF does not routinely comment publicly on economic developments in its individual member countries. In particular, since assuming the position as the IMF's resident representative in Albania in mid-August, 2005, I have not made any public statements regarding the Albanian economy, including its financial markets. Instead, our policy advice is typically provided directly to the governments of our member countries and through the publication of reports.

In your article you refer to IMF Country Report No. 05/274 of August 9, 2005, "Albania: Financial System Stability Assessment," (http://www.imf.org/external/country/ALB/index.htm). This report is based on the joint IMF and World Bank Financial Sector Assessment Program (FSAP) that visited Tirana in February and March this year.

FSAPs are designed to assess the stability of the financial system as a whole, not that of individual institutions. They have been developed to help countries identify and resolve weaknesses in their financial system. FSAPs do not cover risks specific to individual institutions.

In IMF Country Report No. 05/274, it is noted that the holdings of government debt, i.e., Treasury bills and notes, are highly concentrated in Albania, and that market conditions have raised questions about the validity of prices. The absence of a liquid secondary market for government debt further contributes to irregular price movements. Over time, as the Albanian financial sector matures and deepens, with the continued support of the Bank of Albania and international financial institutions, these problems are likely to decline.

Sincerely,

Ann-Margret Westin
IMF Resident Representative in Albania