PRESS RELEASE
Governor Sejko meets representatives of the International Monetary Fund representatives

On 4 March 2022, the Governor of the Bank of Albania, Mr Gent Sejko, met with the International Monetary Fund (IMF) mission, led by Ms Yan Sun, Mission Chief for Albania. The conversation focused on the situation triggered due to Russia-Ukraine conflict and its impacts on the Albanian economy.

The interlocutors also addressed: inflation performance; the exchange rate; developments in the banking and financial sector; the appropriate orientation of economic policies which can withstand any new economic reality; and the undertaking of measures which are as comprehensive as possible.

Governor Sejko said that the Bank of Albania is conducting its evaluations on risk factors balance and will continue to review the adequacy of monetary policy stance.

Right before the conflict started, the Albanian economy was showing clear recovery trends.  Bank of Albania’s estimations suggest that the grave geopolitical situation will have a present impact, mainly in the form of higher prices of imported items and raw materials. 

The Governor explained that the Albanian economy has a low direct exposure to countries in conflict. Also, the consolidated macroeconomic balance, the sound financial system, the adequate currency reserves, and the space available for monetary and fiscal policy to react are added guarantees in this critical situation.  

Mr Sejko highlighted that the banking sector appears stable, with indicators showing a financial environment ready to further support the economic growth of Albania. Last, the Governor 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 present situation of the armed conflict is complex.  However, they agreed on the assessment that the exposure of the Albanian economy is low and resilient against the economic and financial impact of the conflict, if the latter remains within the current dimensions.

Furthermore, they added that the current conflict in Ukraine and the sanctions imposed on Russia increase the level of uncertainty as regards indirect consequences, since global markets appear more volatile over the last days.

In conclusion of the discussions emphasis was put on the importance of continuous monitoring of the situation and of policy coordination from Albanian authorities, by undertaking the necessary measures in due time.