BANK OF ALBANIA

PRESS RELEASE
Presentation of the EBRD Transition Report 2015-16

Publication date: 18.12.2015

 

On 17 December 2015, the Transition Report 2015-16 of the European Bank for Reconstruction and Development (EBRD) was presented at the premises of the Bank of Albania.

In his opening remarks, Mr Gent Sejko, the Governor of the Bank of Albania, noted that The Transition Report 2015-16 provides a coherent guide for the formatting of the development of the transition countries' agenda, highlighting the structural growth problems and the macro and microeconomic weaknesses of these countries.

Regarding Albania, the report presents some concrete suggestions for the restructuring and the further development of the financial system. "Among others, this system needs to be diversified further in terms of its segments and products, and should rely more on domestic savings. Also, the banking sector and the businesses need to design more rational  financial strategies."- the Governor remarked.

Governor Sejko concurred with the issues discussed during the presentation as well as the findings of the survey regarding lending deceleration, which almost all countries in transition are already facing. "In Albania's case, we can say that the interest rate is not the only factor affecting the growth of lending. Low aggregate demand is another factor contributing to this performance. The Bank of Albania is pursuing an accommodative monetary policy, in order to further promote lending, which is, in turn, reflected in a further reduction of interest rates." the Governor said.

Mr. Peter Sanfey, Director of Department of Country and Sector Economics at the EBRD, presented in more detail the Transition Report 2015-16.

In conclusion, once again Governor Sejko thanked the EBRD for the important contribution and the concrete support with financial investments in key areas of the Albanian economy and invited the EBRD to continue to consider the great potential that Albania has to offer.