The Bank of Albania reported that Governor Gent Sejko led a delegation to the International Monetary Fund and World Bank Group Annual Meetings in Washington on 16–18 October 2025, holding meetings with senior IMF and World Bank officials and presenting an update on Albania’s economic and financial conditions, the central bank’s policy stance, and priorities for strengthening financial stability. The Governor outlined GDP growth of around 3.5% per year over the past two years, inflation remaining low and close to the 3% target, and historically low unemployment alongside wage growth. He described a policy mix of continued fiscal consolidation to reduce public debt, accommodative monetary policy aimed at anchoring inflation expectations, and macroprudential measures focused on banking-sector and real-estate risks; inflation is projected to converge to target in 2026, with key risks stemming from weaker external demand and geopolitical tensions. On financial-sector innovation, he highlighted Albania’s membership in the Single Euro Payments Area since 2024 and noted that the first SEPA transactions were executed on 7 October 2025, alongside ongoing work on an instant payment project through a TIPS clone. IMF and World Bank representatives commended SEPA membership and positively assessed Albania’s recent progress, while IMF counterparts also endorsed Albania’s free-floating exchange rate regime and stated that interventions should remain aligned with the price stability mandate and mitigating speculative-driven fluctuations. The parties concurred on continuing collaboration and technical assistance, including in banking supervision, payment systems and legal aspects.
Bank of Albania 2025-10-19
Bank of Albania governor briefs IMF and World Bank on Albania’s outlook and first SEPA transactions
Governor Gent Sejko led a delegation to the IMF and World Bank Annual Meetings, discussing Albania's economic conditions, policy stance, and financial stability priorities. Highlights included GDP growth of 3.5%, low inflation near the 3% target, and Albania's SEPA membership since 2024. IMF and World Bank officials praised Albania's progress and endorsed its free-floating exchange rate regime, emphasizing continued collaboration in banking supervision and payment systems.