IMF reaction
to the article published today in Gazeta Shqiptare newspaper

Regarding your article "The central bank, dependant on politics", dated December 16, 2005, we want to clarify what seems to be a misinterpretation. Ms. Laura Kodres, the IMF deputy chief of the FSAP team for Albania did not say that the IMF has noticed cases of political interference in the monetary policy decision-making. In fact, when asked by the journalists, she replied clearly negatively to this question. We find that the article has pictured her statement differently.

What the FSAP has recommended is that a legal stipulation be made to prevent by law any cases of conflict of interest of board members. The IMF has committed to assist the Bank of Albania in the development and implementation of such legal regulations. In line with international standards and best practices, a similar kind of legal stipulation should also ensure that all conflicts of interest are removed or prevented in the case of supervising agencies of non-bank institutions as well.

Sincerely,

Ann-Margret Westin
IMF Resident Representative
Albania