Gent Sejko: Albania's economic and financial developments in 2019 Speech by Mr Gent Sejko, Governor of the Bank of Albania, during the presentation of the Annual Report of the Bank of Albania for 2019 in the Albanian Parliament, Tirana, 2 July 2020. * * *  Honorable Mr. Speaker of the Assembly, Distinguished Ladies and Gentlemen, Let me thank you for the invitation and the opportunity you have given me to present to you the Annual Report of the Bank of Albania for 2019. In general, I find that the work of the Bank of Albania has had a positive contribution to strengthening the monetary and financial stability of the country. This stability is a necessary precondition for the sustainable and long-term development of the country. Also, the Bank of Albania has fulfilled its other legal duties, has made progress in the implementation of the Medium Term Development Strategy, and has implemented the recommendations left by the Albanian Parliament. *** In accordance with the legal framework in force, the main objective of the work of the Bank of Albania is to achieve and maintain price stability. 1. Albanian economy and monetary policy during 2019 2019 was a challenging year for the Albanian economy. Economic activity continued to benefit from rising private consumption and the rapid expansion of tourism. However, the foreign environment proved to be unfavorable, while the decline in electricity production, the gradual termination of investments in major energy projects, and the November earthquake had strong negative effects.

This blow required a quick and comprehensive response of the public authorities, both in terms of health and economic and social. In addition to fiscal easing measures, the Bank of Albania undertook a comprehensive package of measures to provide the necessary liquidity to the banking system, to boost lending and to control debt service costs. This package includes: 2/3  BIS central bankers' speeches  reduction to 0.5% of the key interest rate and unlimited supply of liquidity to the banking system; temporary easing of banking regulations, to enable the temporary postponement of the payment of loan installments to customers in difficulty and the consensual restructuring of loans to customers with solid business prospects, helping business finances and increasing their chances of survival; elimination of operating costs of the electronic payment system, in response to the increasing demand for this type of activity; increase operational capacity to guarantee the supply of the economy with physical money. In response to these measures, financial markets continue to function normally, despite increased public sector demand for financing and increased uncertainty in the economy. They also enable and complement the fiscal package of the Albanian government. In economic terms, coordinated fiscal, monetary and macroprudential measures have partially mitigated the negative effects of the pandemic. However, the challenges ahead remain serious. In our judgment, the Albanian economy has the premises to successfully withstand this blow. However, this requires that all public actors and private sector operators make the right decisions, in a timely manner and in the most coordinated manner possible.