Sejko: The decrease of interest rates boosted lending

Tirane, Albania / March 1, 2016

The Bank of Albania’s Governor, Gent Sejko, has explained in a press interview the facilitating monetary policies applied by the bank during the past year. According to Sejko, the bank has maintained low interest rates for the Euro and Albanian Lek currencies in order to boost lending by private banks. “The bank decreased Euro’s interest rate in order to standardize it with the one of the European Central Bank, not only with the aim to boost the lending in the Euro currency.

For the past two years, the Bank of Albania has continuously decreased the Albanian Lek’s interest rate in order to boost lending in ALL, as a way to maintain a stable situation of the ALL currency. Currently, the ALL currency has an interest rate of 1.75%, the lowest in Bank of Albania’s history.

During the economic crisis in 2008 of the Eurozone which also had negative effects into the Albanian economy, the Albanian Lek depreciated against other currencies. Before and after the economic crisis, the Albanian Lek has been stable, said the Governor Sejko.

Speaking about the current situation of the country’s economy, Sejko said the economy should focus on the production sectors and in increasing exports. In 2015, the economic growth of Albania was 2.7% while this year we expect to have a better economic performance, added Sejko.

News source/photo credits: ATA