IMF urges Albania to safeguard central bank independence following fraud allegations

Tirana, June 7, 2024 — Concerns over financial stability in Albania have been reignited following recent actions by the Tirana Prosecutor's Office against several companies accused of fraudulent activities. These developments have prompted discussions on the critical importance of preserving the independence of Albania's central bank, the Bank of Albania, to ensure the integrity of the country's financial system.

The International Monetary Fund (IMF) has emphasized the necessity of maintaining the Bank of Albania's independence in light of these events. The IMF's stance comes amid ongoing efforts by Albanian authorities to address the pressing issue of non-performing loans, which poses a significant risk to the stability of the banking sector.

In a recent press conference, Julie Kozack, the IMF Communications Director, stressed the vital role of the central bank's independence in maintaining financial stability. Kozack reiterated the IMF's commitment to collaborating closely with Albanian authorities to tackle non-performing loans and mitigate risks to the banking sector.

"The Bank of Albania plays a crucial role in ensuring financial stability within Albania," stated Kozack. "Its independence is paramount for effectively regulating the banking sector and safeguarding the stability of the financial system."

Echoing these sentiments, the Bank of Albania has reaffirmed the importance of maintaining its independence to effectively regulate the banking sector. The central bank has pledged to continue working closely with the IMF and other international partners to address the challenges posed by non-performing loans and uphold the stability of the financial system.

The article was originally published by Monitor and was translated and adapted into English.