PRESS RELEASE
Launching of the EBRD Transition Report 2021-2022

On 5 April 2022, at the premises of the Bank of Albania, the EBRD Transition Report 2021-2022 was presented.

In his opening remarks, the Governor of the Bank of Albania, Mr Gent Sejko, stated that the Transition Report remains an important moment of discussion and reflection on the challenges that lie ahead to regional economies in terms of convergence with the European Union standards and for the sustainable and long-term growth of their welfare. 

The Governor highlighted that having this meeting in person conveys an important message, showing that global economy is leaving behind the worst days and the heaviest consequences triggered by the pandemic over the course of the past two years.  

“Nevertheless, in our horizon as policy makers - also in the daily economic life of each business and household - a new challenge has emerged. The Russia’s military attack on Ukraine and the implemented sanctions drove to a sharp upsurge in the prises of foods, oil, energy products and raw materials across international markets.  Amid a considerable uncertainty, the available information suggests that prices will continue to remain high, at least, even in the rest of 2022” - said the Governor.

In this context, the increase of policy rate in the last month signals the commitment of the Bank of Albania to safeguard the price stability in Albania The re-calibration of monetary policy aims at minimising the consequences that price shock will have on: the costs of life; the exchange rate; and on the soundness of the banking sector, in both short run and medium term. 

Then, Governor Sejko addressed the main messages of the Transition Report, pointing out that this Report evidences the further though gradual progress of structural reforms in Albania and regional countries. It promotes the progress made in the last two years, when the attention and main energies were focused on overcoming the consequences from the pandemic. At the same time, the Report emphasises that regional countries have achieved a substantial progress in the development of financial market, with specific-targeted reforms which have improved: the market infrastructure; the legal and regulatory framework; the financial instruments; and the market depth. 

In addition, the Report notes that tackling the pandemic has accelerated the started digitalisation trend in many aspects of our life and work. Governor stated that benefits from digitalisation, in terms of increasing productivity efficiency and access in finance, are well documented. 

The Report assesses that this process was even faster across our region, in turn contributing to the increase of competition, the preservation of jobs throughout the pandemic and their increase once the economies were opened.

Concluding, Mr Sejko emphasised that the Report suggests that the Bank of Albania has assessed and promoted the application of information technology and the digitalisation in the financial system since the beginning. In this regard, it has been worked on: promoting the higher use of technology in the payment system; improving and strengthening the regulatory framework for the electronic payment institutions; and the protection of consumers and borrowers.

Governor Sejko thanked the EBRD representatives for the valuable contribution and concrete support through financial investments in key areas for the economy of Albania, and invited them to continue considering the potential that Albania has to offer.

The high representatives of the EBRD presented the EBRD Transition Report 2021-2022, as well as the assessments on the Western Balkans and responded to the interest of the attendees and journalists.