Governor Sejko meets the World Bank delegation

On 18 November 2024, the Governor of the Bank of Albania, Mr Gent Sejko, met with a World Bank Group delegation in the framework of their mission on Remittances and Payments, led by Mr Asad Alam, Regional Director for Eastern and Southern Africa for the Equitable Growth, Finance and Institutions (EFI) Vice Presidency of the World Bank. Also, present in this meeting were Mr Emanuel Salinas, World Bank Country Manager for Albania and Mr. Richard Record, World Bank's Lead Country Economist for the Western Balkans.

Governor Sejko presented an overview on the economic developments of Albania, highlighting that the Albanian economy and its main indicators of economic, monetary and financial stability are on a positive development trend.

Regarding economic activity, the Governor said that inflation rate stands at low levels, public debt and external debt have declined, and balance sheets of the banking sector remain sound, while lending is displaying a progressive growth.

The Governor also discussed one of the strategic objectives of the Bank of Albania, the modernisation of payment systems. Focusing on their developments, he emphasized the importance of submitting the application for integration into the Single Euro Payments Area (SEPA), as well as financial inclusion and literacy, as key issues for the progress of Albania.

Next, Governor Sejko addressed the main benefits that Albania's membership in SEPA will bring to Albanian economy and households. He pointed out that Albanian citizens and enterprises will carry out payments and transfers as if they were European Union citizens, and vice versa. Thus, in the context of the country's integration process, the accelerated membership in SEPA guarantees that Albanian citizens are treated equally as European citizens, providing for them to conduct payments at lower costs and higher speed. In addition SEPA membership will reduce informality and expand financial inclusion.

Mr Alam commended the Bank of Albania for the successful management of the crises over the past years, such as the pandemic and price shocks that affected the entire region in 2022.

The World Bank representatives praised the monetary policy implemented by the Bank of Albania as an important contribution to the positive performance of the country's economy, emphasizing that the prudential normalization of the monetary policy stance has contributed to reducing inflation.

Furthermore, Mr Alam addressed the country's financial stability and environment, emphasizing the importance of expanding credit and improving the quality of its portfolio. Moreover, he congratulated the Bank of Albania for managing the non-performing loans ratio, which has reached its lowest levels in over a decade.

As part of the country's financial and economic stability, Mr Alam added that protecting and strengthening the independence of the Bank of Albania, while carrying out its functions as mandated by law, remains essential to achieve its legal mission of safeguarding financial stability and price stability in the country.

During the meeting, the interlocutors concurred on the further continuation of efforts that the Bank of Albania has undertaken for improving the regulatory framework of the financial system, especially in regard to consumer protection, to ensure more effective protection of consumers' interests within continuous evolving market.

Mr Alam stated the engagement of the World Bank to provide its full assistance on this issue.

Concluding, Governor Sejko expressed his gratitude to the World Bank as an important partner in drafting and implementing these challenging projects, which aim to build a financially inclusive society, where each individual has the opportunity to thrive and achieve their potential, as well as for the technical assistance provided over the years.