Albania has maintained financial stability – IMF assesses government and BoA measures after earthquake and pandemic

The International Monetary Fund (IMF) Mission conducted a virtual visit on September 17-28, 2020, to conduct the first Post-Program Monitoring discussions. “The earthquake of November 2019 and the pandemic of COVID-19 have had great consequences for the lives of the people and the economy of Albania. Thanks to the appropriate management of facilitative financial policies and conditions in the world, the macroeconomic and financial stability of Albania has been maintained,” the IMF said in a statement for our country. “Support for people and businesses affected by these crises is justified, but it must be temporary, with identified beneficiaries, and be subject to transparency and accountability,” the fund said.

The authorities need to redouble their efforts to improve tax revenues by establishing a fairer, simpler, more efficient and more transparent tax system that fosters economic growth. Regarding the banking sector, the IMF clarifies that, it has continued to be stable and liquid so far. In particular, the relatively high level of non-performing loans is likely to increase due to the impact the pandemic has on borrowers.

“In the macroeconomic plan, the decline in economic activity is reflected in weak inflationary pressures, rising unemployment and expanding foreign and public debt of the country. In the microeconomic plan, the decline in activity has brought financial difficulties for Albanian businesses and families “- says the Bank of Albania.

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