reflected the decrease in credit to the private sector and the lower financing needs of the public sector. credit to the private sector shrank 2. 4 % in march. besides the weak demand from businesses and households, the sluggish performance of credit reflects the banks ’ conservative lending policies. this approach is reflected not only in the interest rates on loans, but also in other lending standards applied by the banking system. in this regard, the bank of albania deems that the banking system in albania has room for and should adopt a more appropriate behaviour towards crediting the albanian economy. the country ’ s economic and financial reality, on - going monetary policy easing and our liquidity - injection operations, as well as the adaptation of our regulations to the market situation provide the premises for faster crediting to the economy. consisting in financial institutions licenced to facilitate movement of funds in the economy, the banking system should be more active in crediting, as the steady growth of the economy is a prerequisite for the sustainable growth of the banking system itself. * * * the supervisory council concluded that the incoming available information does not alter our baseline projections on the country ’ s economic activity. the economy is expected to record a gradual growth in the quarters ahead, driven by foreign demand and domestic private demand. the output gap will remain negative during 2014, though the gap is expected to narrow. the price performance will continue to be contained and inflation is expected to gradually approach the target. recent information, however, reinforces our judgement for subdued inflationary pressures in the period ahead, keeping the balance of risks on the downside. at the end of the discussions, the supervisory council decided to lower the key interest rate by 0. 25 percentage points, to 2. 50 %. this further easing of monetary conditions is expected to facilitate a faster return of inflation to the 3 % target of the bank of albania. bis central bankers ’ speeches

gent sejko : opening remarks - 6th imf and wb constituency meeting opening remarks by mr gent sejko, governor of the bank of albania, at the joint 6th annual costituency meeting, organised by the international monetary fund and the world bank, tirana, 16 february 2024. * * * your excellency, prime minister, dear ministers of finance and fellow governors, allow me, first of all, to welcome you to this annual meeting of our joint constituency in the international monetary fund and the world bank, which is taking place at the new premises of the bank of albania. also, let me highlight that this is a special pleasure for us, along with the minister of finance of albania, as we have the opportunity to provide this welcome at the opening session of this event, for which we are the host country. dear participants, the economic reality in recent years has been challenging. the 2020 - 2021 pandemic and the economic consequences of russia's military aggression against ukraine have been quite serious. however, i believe i am expressing a common opinion if i point out that the resilience of our economies and societies in the face of these challenges has been admirable. in particular, against a global context characterized by a rapid surge in prices, uncertainty and financing costs, we have managed to ensure positive growth rates in the overall economy, in employment and in wages. we have made progress in reducing inflation, and we have safeguarded the overall economic and financial stability of our economies. albania is also part of this encouraging narrative. the year 2023 ended with economic growth at around 3. 5 %, the unemployment rate at historic lows, as well as foreign debt, public debt and non - performing loans ratios below pre - shock levels. in particular, inflation was halved over the past year, down to 4 %, while indicators of the banking sector's soundness remain positive. a surprise in 2023 was an increase in the interest of foreigners in our country. albania welcomed around 10 million visitors, climbing to third place in the world for the fastest growth in tourism and recording – for the first time in its history – a current account surplus. also, the year 2023 is well on its way to being the year with the highest level of foreign direct investments, proving once again the attractiveness of albania as an investment destination. the bank of albania has made its contribution in this regard. we have addressed the increase in inflation in a timely