Gent Sejko: Intensifying mutual cooperation between Albania and
Turkey
Speech by Mr Gent Sejko, Governor of the Bank of Albania, at the signing of the Memorandum of
Cooperation between the Bank of Albania and the Central Bank of the Republic of Turkey, Tirana,
6 November 2017.
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Honourable Governor Çetinkaya,
Your Excellency Ambassador Bayraktar,
Dear members of the delegation from the Central Bank of the Republic of Turkey,
Dear guests,
Ladies and Gentlemen,
I have the pleasure to have the Governor of the Central Bank of the Republic of Turkey, Mr Murat
Çetinkaya, as our guest on a one-day visit to the Bank of Albania, on the occasion of the signing
of a Memorandum of Cooperation.
This memorandum is an expression of our common will and desire to continue and intensify the
mutual cooperation that has been already in place for years.
Opening addresses are supposed to be brief and I would rather not break with such tradition.
However, I find it appropriate to share with you some thoughts on: (i) the international context
surrounding the signing of this memorandum; (ii) the current level of the bilateral relations
between Albania and Turkey; and, (iii) the main aspects of future cooperation.
1. International context
Our institutions - the respective central banks - play a significant role in promoting and
guaranteeing monetary and financial stability, supporting the sustainable development of our
countries and the welfare of our citizens. The central banks draft, implement, monitor and
assess their monetary, micro and macro-prudential policies against the backdrop of a highly
integrated and interdependent global economy.
On the one hand, integration bolsters economic growth, enabling a more efficient distribution
of labour and capital, thus facilitating the transfer of knowledge and of technology, and
promotes the adoption of best practices in economic and financial management.
On the other hand, experience has shown that globalisation may spill over and amplify
negative shocks among the countries, hence creating risks to financial stability, which
interfere with central bank mandates.
The experience of Albania during the transition period and onward perfectly illustrates these
aspects. The Albanian economy has benefited from integration with the global economy; but,
recently, we have also been under the pressure from consequences that some of our trading
partners experienced due to the financial crisis.
Therefore, our response functions have become increasingly complex, relating not only to the
adjustment of the domestic product, labour and capital markets to external shocks, but also to
the performance of international markets. This reality requires us to be heedful of international
developments, and seek common solutions for the challenges we are facing.
The cooperation, coordination of policies and strengthening of effective dialogue between central
banks is an indispensable requisite for drawing advantages from the opportunities arising from
economic, financial and technological integration, and enhancing the immunity against the
relevant challenges.
2. Economic and financial integration among our countries
Our countries have many things in common - these elements are more than sufficient to build
and consolidate bridges of cooperation. Turkey is an important market for Albania and its
economy.
To illustrate my point:
·Turkey is Albania's fourth trading partner and its sixth investment partner.
In the services sector, Turkey is an important destination for Albanian tourists; on average
around 80 thousand Albanians travel to Turkey, whereas Albania has welcomed around 69
thousand Turkish travellers in 2016 and 38 thousand travellers over the first six months of
2017.
At present, 429 joint-venture companies operate in Albania and Turkish investors have a
great interest in Albania. The stock of foreign direct investments from Turkey amounts to
around EUR 481 million, or around 4.3% of the Gross Domestic Product at the end of the
first half of the current year. These investments are mainly concentrated in areas such as:
energy, metal processing, telecommunications and finance.
The presence of the Turkish capital in the banking and financial sector. One of the main
banks in our banking system has Turkish capital. Recently, in addition to the classical
banking activity, the Turkish capital has expanded to non-bank financial institutions, thus
helping deepen and develop alternative financial markets.
Both our countries have great economic and financial potential, which should not be limited within
their geographic territories. The Bank of Albania is an active supporter of financial and economic
integration, considering it as one of the most important pillars to release the potential of the
economy and boost its resilience to shocks.
3. On the Memorandum
All the above, underlines the great importance of our economic and financial cooperation with
Turkey. This cooperation imposes even us - the policy makers - to intensify the exchange of
information and opinions, and seek to promote the finding of common solutions to common
challenges.
In this spirit, the Bank of Albania and the Central Bank of the Republic of Turkey are signing today
this Memorandum of Cooperation, which may be well considered as the coronation of the insofar
cooperation, as well as of our efforts to continue with drafting the relevant institutional framework
for clarifying the operational cooperation protocols, in a series of central bank fields.
This memorandum elevates the relations between our two countries to a new dimension. It
confirms the will to elevate the level of cooperation and consolidate the ties between the two
countries, providing for both institutions the necessary space for the intensification of mutual
exchange of information and expertise in various fields of central banking, such as: supervision,
financial stability, research, and financial education, and the regular dialogue at technical and
political level. It is an important step for obtaining maximum benefits from the positive effects of
integration and minimising the negative ones.
Lastly, I would like to underline that the Bank of Albania will make maximum efforts for the
cooperation in the framework of this agreement to be concrete and have a direct impact.
Concluding, on behalf of the Bank of Albania, allow me to thank once again the Central Bank of
the Republic of Turkey for the continuous fruitful cooperation; I would also like to thank, in
particular, Governor Çetinkaya, who has honoured us today with his presence at the ceremony of
signing the Common Memorandum.
Thank You!