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 five years.

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.