The Governor of the Bank of Albania, Mr. Gent Sejko, held today a meeting with the World Bank delegation, led by Ms. Johanna Jaeger. The meeting took place in the framework of joint projects that the Bank of Albania is developing with the World Bank.
During this meeting, Governor Sejko presented the economic performance of the country, where he stressed that economic growth has continued the positive trend, albeit at a slower pace. Further, the Governor focused on the latest developments, noting that the earthquake of November 26 had a negative impact on the pace of economic growth, which is expected to be carried over during 2020, with a resultant temporary slowdown effect and focused on economic growth and inflation.
The Governor further stated that on the other hand, the reconstruction process is expected to give a positive growth effect, but this effect will be later in time compared to that of negative shocks and not strong enough to offset the effects of tire.
Governor Sejko stressed that the Bank of Albania will continue to give its contribution to the further economic development of the country and the preservation of financial stability. The easing monetary policy pursued so far by the Bank of Albania has created favorable conditions in the economy and the necessary incentives in the financial markets. Currently, the overall financial environment is favorable, markets are characterized by low interest rates, good liquidity situation, increasing exchange rate stability and an increasing lending trend.
The Governor underlined that the Bank of Albania will remain committed to further improving the financial system, focusing on the development of financial markets and the payment system; further promotion of lending, through the implementation of the Platform for Credit Recovery in Albania and the continuation of work to reduce non-performing loans. The non-performing loan ratio dropped to 8.4% in December 2019; a significant improvement of this indicator, which peaked 5 years ago at 25%.
During the meeting, the representatives of the World Bank praised the contribution of the Bank of Albania in maintaining financial stability and supporting the economic development of the country.
In conclusion, Governor Sejko and World Bank representatives discussed future joint projects.