The meeting was held as part of the Mission of Financial Sector, with a special focus on developments in this sector and access to finance.

Assessing the macroeconomic situation and the financial sector in Albania, in the light of world developments and Ukraine-Russia conflict, Governor Sejko estimated that geopolitical tension will hit the Albanian economy, however it will continue to grow during 2022 and ongoing.

Further, the Governor added that inflation has shown an upward trend during the first quarter of the year and the Bank of Albania forecasts that it will remain above the target for most of the next two years. In this context, the Bank decided to adjust the level of monetary stimulus in the economy, increasing the key interest rate to 1.0%.

On the other hand, Sejko informed that the activity of the banking sector is developing normally, with good financial indicators, liquid and healthy balance sheets, upward lending trend and declining non-performing loans.

Representatives of the World Bank highlighted the role of the Bank of Albania in maintaining financial stability and supporting the country’s economic development. In particular, Guadamillas praised the commitment of the BoA during the implementation of joint projects which, according to him, have been quite successful.

Sejko said that thanks to the assistance of the World Bank, the Bank of Albania is ahead of the curve in establishing a complete and viable framework for extraordinary intervention in banks, as compared to countries in the region.

In terms of financial inclusion, support has been mainly focused on payment services and the completion of the relevant regulatory framework, as well as on the drafting of a financial education strategy.
In conclusion, Governor Sejko and representatives of the World Bank discussed the continuity of projects undertaken and the technical assistance needed to successfully close them.
/sm/