The Governor of the Bank of
Albania Gent Sejko stated on Tuesday that the Bank of Albania is monitoring the
macro-economic dimensions so that to consider impact that the political crisis
in the country may have.
“There is currently no substantial
deviation, but every prolongation of this crisis would be reflected into the
economic climate in the country,” said Sejko. The Governor made the statement
after presentation of Report 2016 in front of the Parliamentary Committee of
Economy and Finance.
Sejko highlighted the positive economic
developments during 2016. “Economic growth stemmed mainly from domestic demand,
investments and private consumption and found a reflection in enlargement of
activity of sectors like services and construction”, said Seiko.
Likewise, Sejko said that unemployment
rate got reduced into 14.2%, influenced by the constant increase of employment,
while confidence of economic agents registered the highest level in the last
He also said that the public debt marked
a turning point and began to fall for the first time after 6 years. While
inflation came on the increase, following the low levels registered in the
first months of the year. Inflation recorded 2.2% in December and according to
the Institute of Statistics publication, inflation showed a further increase in
the first months of 2017. Inflation is expected to restore within its objective
level by 2018, said the Head of the Bank of Albania.
Speaking about the facilitating monetary
policy pursued by the Bank, Sejko emphasized that it has made a contribution to
the economic growth and preservation of the price stability.
Further on, Sejko said that the Bank of
Albania has identified two main obstacles to its monetary policies, the
overcome of which requires a wide cooperation. The first obstacle is related to
the high level of non-performing loans. To reduce the risk a national action
plan is being implemented. The second obstacle is related with the high level
of use of the Euro currency in the economy which carries potential risks to the
financial system and makes it difficult implementation of the monetary policy.
The Bank of Albania is taking measures in this direction, said Sejko.
Sejko concluded by saying that the main
financial indicators of a healthy banking system, that of capitalization and
liquidity make evident its full capacity to face risks of activity under normal
conditions as well as a good resistance to other situations. Sejko also spoke
about the security concerns during transportation of monetary values Thus, the
Bank of Albania has urged cooperation between the banks and law enforcement
authorities for taking measures and eliminate shortcomings; it has increased
inspections and it has consolidated the regulatory framework for creation of
conditions of physical security.