Oct 26, 2024 – Gent Sejko, the Governor of the Bank of Albania, participated this week in the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WB) in Washington, DC, where he outlined Albania’s economic developments and future prospects.
In discussions with key leaders of the IMF and WB, Sejko noted that Albania, like many nations, has faced significant global economic challenges, including rising inflation. He declared, “Albania has won the war with inflation that emerged before the Ukraine conflict, and inflation is now at its lowest levels.” Sejko highlighted the current stability of financial markets, which he believes will support Albania’s ongoing economic growth.
Sejko emphasized the effectiveness of the Bank of Albania’s monetary policy, stating it has been data-driven and transparently communicated. He pointed out that Albania’s inflation rate is currently lower than that of its regional peers and EU countries, attributing this success to the Bank’s prudent policies and the management of exchange rate pressures.
In addressing macroeconomic policies, Sejko stressed the importance of alignment to ensure sustainable growth. The IMF and WB representatives congratulated Albania on its progress, particularly regarding the initiation of EU membership negotiations, which they believe will further enhance the country’s political and economic development.
The Governor also welcomed Moody’s upward revision of Albania’s credit rating to Ba3-stable, reflecting improved confidence in the Albanian economy. The IMF and WB commended the Bank of Albania’s reforms aimed at maintaining financial and price stability, which are crucial to its mandate.
Regarding the Albanian banking sector, Sejko described it as stable, noting a significant 17% increase in lending this year compared to previous years, which contributes to sustainable economic growth. He assured IMF and WB representatives that the Bank of Albania is closely monitoring credit, exchange rate, and interest rate risks while working to return inflation to target levels.
In a separate meeting, the governors of central banks from the Western Balkans, including Sejko, met with Chiara Scotti, Deputy Governor of the Bank of Italy. Sejko outlined collaborative efforts with the World Bank and Banca d’Italia to enhance Albania’s payment systems. He stated that Albania aims to join the Single Euro Payments Area (SEPA) and is set to implement a fast payment system based on Europe’s TIPS model, aiming to modernize banking and reduce consumer costs.
