Bank of Albania Governor, IMF mission discuss economic and financial developments

The Governor of the Bank of Albania, Gent Sejko, met with the IMF Mission, led by Anke Weber, to discuss Albania’s economic progress and financial stability. This meeting was part of Article IV consultations, aimed at assessing economic policies and strategies.

Why is this important: The discussions are critical in understanding how Albania is navigating economic challenges, especially concerning inflation, monetary policy, and banking sector health. The IMF’s positive feedback underscores confidence in Albania’s financial governance.

What was said: Governor Sejko highlighted a 4% economic growth rate in the latter half of the year, driven by strong business and household finances, favorable financial conditions, and increased income. He emphasized the role of the Bank of Albania’s gradual and careful monetary policy normalization in reducing inflationary pressures and maintaining monetary stability. Sejko also noted that credit to the private sector grew at an annual rate of 16.8% in the third quarter, with a notable increase in loans in the local currency. Problematic loans fell to 4.58% as of September, indicating a healthy banking environment.

IMF’s assessment: IMF representatives praised the Bank of Albania’s monetary policy, recognizing its impact on maintaining monetary and financial stability. They also highlighted the importance of a flexible exchange rate regime in mitigating economic shocks and advised its continuation. The IMF acknowledged the Bank of Albania’s regulatory and supervisory efforts, which have significantly contributed to the stability and health of the banking sector.

Conclusion: Both parties reaffirmed their strong cooperative relationship and the ongoing collaboration between the Bank of Albania and the IMF, encompassing Article IV missions, technical assistance, and broader economic support initiatives.