The geopolitical tension will hit the Albanian economy, though it will continue to grow in 2022 and further, the Governor of the Bank of Albania, Gent Sejko, said on Friday during a meeting with the World Bank Group delegation, chaired by Mario Guadamillas, Practice Manager, Europe and Central Asia in the Finance, Competitiveness & Innovation Global Practice.

The meeting was held in the framework of the Financial Sector Mission, with a particular focus on this sector and access to finance, the Bank of Albania said in a press release after the meeting.

At the beginning of this meeting, it was assessed the macroeconomic situation and the financial sector in Albania, in view of the international developments and the Russia-Ukraine conflict. Governor Sejko said that inflation has trended upwards in the first quarter of year. The forecasts of the Bank of Albania show inflation will stay above target over the most part in the next two years. In this framework, the Bank decided to adjust the monetary stimulus level in the economy, by raising the key interest rate, at 1.0%.

On the other hand, banking sector operates smoothly, characterized by good financial indicators, sound and liquid balance sheets, an increased lending trend and fall of non-performing loans, Sejko noted.

On the other hand, the World Bank Group representatives praised the contribution of the Bank of Albania in safeguarding the financial stability and supporting the economic development of the county.

In particular, Guadamillas commended Governor Sejko and the Bank of Albania for their commitment during the implementation of joint projects, which have proven to be very successful.

On his part, Sejko thanked the representatives of the World Bank for the technical assistance provided to the Bank of Albania, mainly in the fields of banking resolution and financial inclusion.

Thanks to this assistance, the Bank of Albania has established a full functional framework on banking resolution, thus being positioned ahead across regional countries, Sejko said, adding that in terms of financial inclusion, the assistance has mainly been focused on payment services and the completion of the relevant regulatory framework, as well as on drafting the financial education strategy.

At the end of the meeting, Governor Sejko and the World Bank Group representatives discussed on the continuation of the undertaken projects and the needed technical assistance for their successful finalization.