PRESS RELEASE
Governor Sejko receives H.E. Mr. Vincenzo Del Monaco, Ambassador of the OSCE Presence in Albania

On 1 April 2022, the Governor of the Bank of Albania, Mr Gent Sejko received in an official visit at the premises of the Bank of Albania the Ambassador of the OSCE presence in Albania, H.E. Mr. Vincenzo Del Monaco.

Governor Sejko presented Ambassador Del Monaco with an overview of the financial developments in Albania, focusing on the situation created by the COVID-19 pandemic, the current geopolitical tension and its effects on the Albanian economy.

The Governor pointed out that Albania is a small and open economy, and in consequence it gets influenced by international developments. Like any other country, the Albanian economy was hit by the pandemic, but is continuing to recover at a rapid pace supported by a number of factors, as well as by the measures taken by the Bank of Albania and other authorities aimed at mitigating the negative effects on the well-being of enterprises and households.

The Governor stated that thanks to the contribution of the Bank of Albania and well-coordinated macroeconomic policies, economic activity gradually recovered during 2021.

Regarding the geopolitical tension, the Governor said that this situation is expected to have its effects on the Albanian economy, however the projections for the future remain positive. Based on the current analysis and projections of the Bank of Albania, it is estimated that the Albanian economy will continue to grow during 2022 and onwards.

In addition, Mr Sejko said that the challenging international environment and the Russia - Ukraine- war will continue to be under constant monitoring by the Bank of Albania.

Based on the forecast that the inflation rate will remain above the Bank of Albania's target for most part of the next two years, the Bank decided to adjust the level of monetary stimulus in the economy. This adjustment aims to create the necessary monetary conditions to meet the inflation target, to maintain financial stability, as well as for the sustainable and long-term growth of economy and employment in Albania.

Moreover, the Governor emphasised that the Bank of Albania remains keen to take all necessary measures to respect the objective of price stability in the medium term and to further support the country's economy.

Regarding the banking sector, the Governor said that the activity is developing in normal conditions and the indicators of this sector are stable, thus creating the premises for a financial environment willing to contribute to the economic development of the country and support its potential sectors.

On his part, the Ambassador praised the work done by the Bank of Albania in terms of maintaining and guaranteeing the financial system in the country, and added that thanks to the measures taken by the Bank of Albania, the premises have been created for a faster economic recovery in the following period.

Also, the interlocutors discussed the implementation of the economic reforms and the EU integration process of Albania. In this framework the Bank of Albania pays particular attention on the continuous alignment of the regulatory framework and working practices with the directives and standards of the European Union.

Following, the Ambassador of the OSCE Presence in Albania, H.E. Mr. Vincenzo Del Monaco thanked Governor Sejko for the meeting and commented  the substantial contribution of the Bank of Albania in safeguarding Albania's macroeconomic stability.

In conclusion, they concurred on the prospects for further enhancing the e cooperation and undertaking joint projects in the future.