PRESS RELEASE
Governor Sejko attends the 2024 IMF/World Bank Group Annual Meetings

On 24-27 October 2024, the Governor of the Bank of Albania, Mr Gent Sejko, attended the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG), held in Washington DC, USA.

These meetings represent a high level forum which brings together the most senior decision-makers of the IMF and the WBG, and governors and ministers of finance of the member countries in these international financial institutions, to discuss about the latest developments in the global economy.

The Bank of Albania was represented in the 2024 Annual Meetings by a delegation headed by the Governor of the Bank of Albania, Mr Gent Sejko, the First Deputy Governor, Ms Luljeta Minxhozi, and other BoA senior officials.

During the IMF-WBG Annual Meetings, Governor Sejko had several important meetings with prominent personalities of international finance. Amongst others, from the IMF: Mr Federico Giammusso, Executive Director for Albania; Mr Riccardo Ercoli, next Executive Director for Albania; Mr Alfred Kammer, Director of the European Department; Ms  Jennifer Elliott, Deputy Head of Monetary Capital Markets Department; and Ms Anke Weber, Mission Chief for Albania. From the WBG: Ms Antonella Bassani, Vice President of the Europe and Central Asia Region; Mr   Matteo Bugamelli, Executive Director for Albania; Ms Xiaoqing Yu, World Bank Country Director for the Western Balkans; Mr Jean Pesme, Global Director of Finance in the Finance Competitiveness and Innovation.

In these meetings, the Governor introduced the IMF and the WB’s representative with the economic developments and further progress prospects of Albania. Mr Sejko stated that Albania, likewise other countries, experienced the unfavourable global economic shocks and the elevated inflation. “Albania has gained the war with inflation which appeared since the onset of the war in Ukraine. Now, inflation rate stands at the lowest levels, while financial markets appear calm, with the needed capacity for the support and further progress of the Albanian economy.” - said the Governor.

In this view, the Bank of Albania, in capacity of the country’s monetary authority, has implemented a fully transparent data-driven policy and has communicated it in an effective manner to the domestic stakeholders. Currently, inflation rate in Albania is lower compared to the regional and the EU countries, reflecting a lower headline inflation, as a result of the prudential monetary policy of the Bank of Albania, coupled with the inflationary pressures originating from the appreciation of the exchange rate. 

Regarding macroeconomic policies, Mr Sejko emphasised that they will remain harmonized and work in tandem to ensure a sustainable growth in the medium term.

The representatives of the IMF and the WB commented Albania for the progress made in terms of economic development, and especially for the opening of negotiations with the European Union for the first cluster. The accomplishment of membership criteria leads to the comprehensive political, social and economic development of the country. In addition the interlocutors focused on the improved rating by the prestigious Moody's International Rating Agency, which revised the Albanian economy upward, considering it Ba3-stable, from B1-positive.

They assessed the reforms undertaken by the Bank of Albania in terms of safeguarding financial stability and price stability in Albania, which according to the representatives of these institutions remain the Bank of Albania's mandate and main objective.

Governor Sejko responded to the interest of the representatives of the IMF and the WB regarding the exposure of the Albanian banking system. He highlighted that the banking system appears stable, with good capitalization and liquidity levels. Lending in the economy has grown significantly in recent years - up by 17% in 2024 compared to the previous year - thus contributing to the country's sustainable economic development and growth.

The IMF and WB representatives encouraged the continuous monitoring of bank credit, exchange rate and interest rate risks. In addition, they expressed positive assessments on the role and policy implemented by the Bank of Albania, focusing in particular on the importance of returning inflation to the target. Last, they concurred that the harmonisation and coordination of policies, both in national and international levels, is a precondition to ensure an optimum environment for a sustainable economy.

Governor Sejko and the representatives of the IMF and WB pointed out to the need and importance of the continuing collaboration among our institutions and the advancement of the technical assistance in the future.

Also, in the framework of these annual events, the central banks’ governors in the Western Balkans had an important meeting with the Deputy Governor of the Bank of Italy, Ms Chiara Scotti. The Bank of Albania is cooperating closely with the World Bank and Banca d'Italia for the further progress of the payment system, to offer instant payments, which are conducted in real time, in a safer manner and at lower costs for citizens. “A quite good job has been carried out for modernizing payments and digitalising the banking system. Albania has applied first and is expected to become a member of the Single Euro Payments Market - known as SEPA. At the same time, the Bank of Albania will also implement an Instant Payment system, which is a clone of the TIPS system, the European instant payment system. We are coordinating and discussing also with the Western Balkan countries for the implementation and realisation of this project.” - underlined Mr Sejko.  Modernising the payment system and digitalising banking system will establish the conditions for further developing banking products and reducing costs for consumers.

The Bank of Albania’s delegation met also with counterparts from other countries. Discussions in these meetings focused on the further advancement of bilateral relations, aimed at providing technical assistance to the Bank of Albania on specific issues.

In the framework of these meetings, the Governor and the representatives of the Bank of Albania attended the plenary session of the IMFs’ International Monetary and Financial Committee, the plenary session of the IMF and the WB Annual Meetings, as well as the G30 seminar proceedings.

Also, the Governor of the Bank of Albania, Mr Gent Sejko, was invited to a breakfast meeting with Ministers of Finance and Central Bank Governors, organised by Mr Alfred Kammer, Director of the European Department at the International Monetary Fund. In this meeting, Governor Sejko presented the macroeconomic overview in Albania, the main sectors of development, and the potential of the economy for foreign investors.

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