In a press release, the Bank of Albania announced that, “the purpose of the Mission’s visit to Albania is to hold discussions with the Albanian authorities within the framework of Article IV.”

According to the Bank of Albania, the discussions revolved around the latest economic and financial developments in the country, as well as their outlook for the future; the monetary policy pursued by the Bank of Albania with the aim of ensuring price stability; as well as the measures taken to maintain and strengthen the health of the banking sector and the country’s financial stability.

Initially, Governor Sejko briefed the interlocutors on the latest developments in the domestic economy, highlighting that the key indicators of its economic, monetary, and financial stability are on a positive development trend.

According to the latest data from INSTAT, the Albanian economy recorded a growth of 4% during the second half of the year. This growth is mainly attributed to the healthy financial balances of businesses and households, a stimulating financial environment, and an increase in revenues.

Also, the Governor emphasized that the monetary policy pursued by the Bank of Albania has had a positive impact on maintaining the country’s monetary and financial balances, where the gradual and cautious normalization of the monetary policy stance has enabled the reduction of inflationary pressures.

Focusing on the performance of the banking sector, the Governor stated that credit to the private sector continued to show positive growth rates during the third quarter of the year, with an annual growth rate of 16.8%, driven mainly by lending in the local currency. An important indicator of the banking sector’s health is the reduction of non-performing loans, which stood at 4.58% in September.

For their part, representatives of the International Monetary Fund (IMF) expressed appreciation for the monetary policy pursued by the Bank of Albania and its significant contribution to monetary and financial stability. They also highlighted the positive role that the free –floating exchange rate regime has played in cushioning external shocks and emphasized the need for its continuation in the future.

IMF representatives positively assessed the ongoing supervisory and regulatory work of the Bank of Albania, as well as its impact on the positive indicators of the banking sector.

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