PRESS RELEASE
Governor of the Bank of Albania, Mr. Gent Sejko, receives the Ambassador of the Unites States of America, H.E. Ms Yuri Kim.

On 15 April 2022, Governor Gent Sejko held an official meeting with the Ambassador of the United States of America in Albania, H.E. Ms Yuri Kim at the premises of the Bank of Albania.

This meeting took place in the framework of the re-election of Governor Sejko for a second term as the head of the central bank. At the beginning of the conversation, Ambassador Kim congratulated the Governor, assessing that his re-election supports the stability of the Bank of Albania as a key institution in the further development of the country.

Following the conversation, the focus was on the post-Covid-19 economic situation in Albania and the complex environment already created due to geopolitical tension from Russia's military attack on Ukraine.

The Governor said that after a strong recovery of the Albanian Economy that followed the pandemic during 2021, this year, the economy is facing a new international challenge, that of rising prices.

Further, the Governor added that based on current trends and available information, it is expected that this price shock, on the supply side, will have a significant impact, however it will not disrupt the ongoing economic recovery and is expected to be transient.

Sanctions imposed on Russia and rising volatility and uncertainty in international markets dictated a review of the Bank of Albania's previous projections and the need to re-evaluate the appropriateness of the monetary policy stance.

During the conversation, the Governor added that in this dynamic environment, policy-makers are facing dilemmas of their policies. Monetary policy should focus on monetary and financial stability without unnecessarily hindering recovery, while fiscal policy should ease the burden on the poor and vulnerable sectors of the economy without jeopardizing public debt.

The Governor stressed that the Bank of Albania reacted through the instrument of monetary policy to maintain price stability in the country, as well as to minimize the consequences that the price shock may have on the cost of living, the exchange rate and the soundness of the banking sector.

Governor Sejko assured Ambassador Kim that the Bank of Albania remains ready to use all the necessary legal and regulatory instruments at its disposal, in cooperation with all authorities in the country, in order to cope with this situation, while maintaining macroeconomic parameters and price and financial stability in the country.

In addition, Governor Sejok presented the situation of the banking sector in the country, emphasizing that it is well-capitalized, solid and with good indicators of liquidity and financial soundness, where we can mention the non-performing loan ratio reduced to the current level of 5.4%.

On her part, Ambassador Kim praised the role that the Bank of Albania and the banking system have continuously played, as well as the support that the Bank of Albania is giving to minimize the possible negative effects of the created geopolitical tension.

The Ambassador stressed the importance of continuous monitoring of the situation by the institutions in the country, as well as the coordination of policies by the Albanian authorities by taking the necessary measures in a timely manner.

Also, Ambassador Kim praised the very good relations that Albania and the United States of America have and expressed her readiness to provide all the necessary support in this situation.

In conclusion, Governor Sejko thanked Ambassador Kim for the meeting, praising the United States of America as a very important strategic partner for Albania.