The Governor of the Bank of Albania, Gent Sejko, and other bank representatives held a working meeting with Sebastian Sosa, the International Monetary Fund (IMF) Regional Resident Representative for the Western Balkans.

At the beginning of the meeting, Governor Sejko briefed Sosa on the country's latest economic developments, focusing mainly on price developments, developments in the financial and banking system, and expectations regarding future economic indicators, the Bank said in a press release on Friday.

The Governor stated that the Albanian economy performed well during 2024, with steady expansion in economic activity, employment, and wages. Inflation declined and remained at low levels, while economic and financial stability indicators improved.

Regarding the monetary policy pursued by the Bank of Albania, the Governor emphasized that its approach has enabled inflation control without damaging the positive trend of economic growth and financial stability, thus creating the basis for the healthy growth of the country's economy. Meanwhile, the outlook for economic developments for the future remains positive the economy is expected to grow at a stable pace, and inflation is expected to return to the bank's target of 3% during 2025.

Also, Governor Sejko presented to Sosa the program recently approved by the Bank of Albania for financing micro, small, and medium-sized businesses, which aims to create a financing instrument for commercial banks that can be used by them in support of improving access to credit.

The Governor added that this program is conceived within the legal framework that regulates the activity of the central bank and the principles of a market economy and aims to improve the financing conditions of these businesses, with a special focus on those operating in the agricultural sector. It will be implemented through commercial banks operating in Albania and licensed, regulated, and supervised by the Bank of Albania. Furthermore, the central bank has assessed that this program serves the long-term development of the country, creating predispositions for a better approach to lending to these businesses.

Meanwhile, Sosa praised the work and results achieved by the Bank of Albania in strengthening the country's monetary and financial stability. He focused on the importance of returning inflation to target and expressed support for the measures of the Bank of Albania. Another issue appreciated was the continuous monitoring that the Bank of Albania has done of the foreign exchange market, without violating its free regime. Mr. Sosa also congratulated Governor Sejko on Albania's membership in the SEPA geographical area, as an important historical moment in the country's journey towards European integration.

At the conclusion of the meeting, Governor Sejko and IMF representative Sosa emphasized the need and importance of continuing cooperation between the two institutions and continuing to provide technical assistance in the future.