In the meeting, the representatives of the WBG discussed, among others, about issues related to fiscal policies, in the framework of the ongoing budget support programme and financial system development.
Related to fiscal issues, the Mission underlined the need to increase transparency and fiscal responsibility, as crucial elements for enhancing the stability of public finances.
Regarding the further development of financial system, the Mission highlighted the willingness of the World Bank to continue to contribute to the complete implementation of the national action plan for reducing non-performing loans and to the further improvement of payment system. Also, they presented the possibility of agreeing on joint programs in the future, which would further improve the lending environment.
Governor Sejko emphasised that the Bank of Albania has supported and continues to support fiscal consolidation. This process helps the stable economic and financial growth of Albania. Also, the monetary and fiscal policies coordination plays a positive role in enhancing the effectiveness and establishing the preconditions for the stable and long-term development of the country. The Governor affirmed the support of the Bank of Albania for the initiatives that aim to enhance the formalisation of the Albanian economy and strengthen the soundness of public finances, highlighting the contribution that the Bank of Albania has provides and continues to provide in this regard.
He presented the main challenges to the Bank of Albania, such as boosting lending. The Bank of Albania has continuously paid attention to boosting lending, as it is important for the stable financial development of the country. Recently, the Bank of Albania organised a special meeting with the banking sector’s executives to adopt a joint development philosophy and draft a concrete plan of measures to improve the quantity and quality of lending and broaden the range of financial products.
Related to financial sector development, Governor Sejko introduced the mission with the concrete steeps undertaken by the Bank of Albania in recent years. In particular, he noted the draft-law “On payment services”, drafted with the technical assistance of the World Bank, and submitted to the Parliament. Meanwhile, work continued for the compilation of the draft-law on the payment account, transposing the respective EU directive. The approval of both draft-laws will increase financial inclusion, encourage the use of electronic payment instruments and contribute to reducing costs. Governor Sejko also presented the initiatives of the Bank of Albania on the completion of the inter-institutional programme for the reduction of non-performing loans, focusing on out-of-court resolution of large borrowers.
At the conclusion of the meeting, the interlocutors identified certain aspects for potential collaboration in the future, such as the improvement of regulations on collateral assessment and possible programmes of the World Bank for the reduction of credit risk in Albania.
Governor Sejko valued the contribution of the World Bank for the development of Albania, supporting the structural reforms, and for the improvement of functioning of institutions in Albania. Governor Sejko highlighted that this contribution has helped the Bank of Albania for improving specific fields of its activity and affirmed the commitment of the Bank of Albania to continue the successful collaboration in the future.