PRESS RELEASE
Questions and answers at the press conference, 27 June 2012

Question: Do you consider that the Greek crisis still remains a threat to the Albanian economy? And, second: Do you think that such a contracted inflation may also affect the low consumption?
 
Answer: I will begin my answer dwelling on the sustainable, consequent, far-sighted and transparent decision-making of the Bank of Albania. It has driven the successful implementation of the law concerning the most important thing, which is price and micro-financial stability at home. We are seeing that, countries experiencing the most difficult situation nowadays are the ones, whose financial system has been hit by the crisis. In their case, a strong financial support is required to balance the banks' balance-sheets and restore the low confidence on financial institutions at the respective countries. The current Greek crisis is closely monitored by the international spectrum, and the Bank of Albania is also following its developments to ensure the micro-financial stability at home.  

In this framework, we have been continuously prudential, ensuring that foreign banks which operate in Albania, and have their parent bank in Greece, be well-capitalised, even better than their parent banks; be liquid, profitable and lend to the Albanian economy.  The new amendments to the law 'On banks in the Republic of Albania' approved the transition of these banks from branches to subsidiaries. These amendments further enhance their stability at home and provide the possibility for the banks operating in Albania to be prudent. I consider the international monitoring of the situation concerning both global and Greek crisis as an increased attention of the international community awareness in general, and of the Bank of Albania's decision -making in particular.   

With regards to incentives, I consider that the largest stimulus Bank of Albania has provided prior to, during and particularly at the course of this situation is the maintaining of consumer price level, macro-financial balances and the financial stability at home. We will continue guarantee the public that micro-financial stability at home shall be assured. Relating to the incentives, the today's decision is a stimulus. If some prerequisites we deem as indispensable are fulfilled, the Bank of Albania would consider another review of the key interest rate. But, I would like to underline that any incentive of the Bank of Albania should guarantee the maintaining of price and micro-financial stability at home.