TIRANA, March 7/ATA/ Governor of the Bank of Albania Gent Sejko held a meeting with the mission of the International Monetary Fund (IMF), headed by Yan Sun, Head of the IMF Mission to Albania.
The conversation focused on dealing with the situation created by the Ukraine-Russia conflict and its effects on the Albanian economy. The topics discussed were inflation performance, exchange rate, developments in the banking and financial sector, as well as the proper orientation of economic policies to anticipate every new economic reality and to take the most comprehensive measures possible.
Governor Sejko said that the Bank of Albania is making its assessments on the balance of risk factors and will continuously review the monetary policy stance.
Prior to this conflict, the Albanian economy has shown clear recovery trends. The Bank of Albania estimates that the impact of the aggravated geopolitical situation will be present, mainly in the form of higher prices for imported items and raw materials.
The governor submitted that the Albanian economy has little direct exposure to countries in conflict. Also, the consolidated macro-economic balance, the sound financial system, sufficient foreign exchange reserves, as well as the space for reaction of monetary and fiscal policies, are one more guarantee for coping with critical situations.
The Governor stressed that the banking sector is stable, with indicators that show a financial environment ready to further support the economic development of the country. Finally, he added that the Bank of Albania remains ready to take all necessary actions according to the law, to support the banking activity and contribute to the stability of the financial system.
The IMF representatives assessed that the current situation of the armed conflict is complex. However, they shared the view of the low direct exposure of the Albanian economy, as well as its resistance to the economic and financial impact of the conflict, if the latter remains in its current dimensions.
Further on, they added that the current conflict in Ukraine and the sanctions imposed on Russia add elements of uncertainty to the indirect consequences, as world markets have appeared volatile in recent days.
At the end of the discussions, they highlighted the significance of continuous monitoring of the situation, as well as the coordination of policies by the Albanian authorities, taking the necessary measures in a timely manner. /a.a/p.s./
