Governor says Albania not threatened by world crisis

TIRANA, Oct 15 – Central Bank of Albania Governor Ardian Fullani said that Albania was not seriously threatened by the world financial crisis due to its relatively low level of exposition of its financial system to the world financial institutions and the products that caused the crisis, low level of integration and the good capitalization of the activity of the European banking groups and their branches operating in the country.
Fullani and Finance Minister Ridvan Bode were at the International Monetary Fund annual meeting and also that of the World Bank where they met with senior finance experts to discuss on the country’s future work to keep its finances under control.
In an interview to the Voice of America, Albanian section Fullani said that the bank had paid special attention to the loans during the last two years and has also taken important initiatives to coordinate work with counterparts in the region.
The central Bank of Albania has concluded that “the Albanian banking system is safe, well-capitalized, profitable and liquid.”
“None of the banks operating in Albania has not invested in any for in the intoxicated actives that were the main factor of the grave global financial situation,” said Fullani.
The governor said they would cope well with the different threats that could come from “undesirable moves in the exchange rate and the norms of interests.”
The main source of funding the banking system is the deposits which cover 80 percent of its actives.
The main bank acknowledged there has been a slight worsening of the bad loan portfolio this year going up to 4.3 percent, but still lower than the average in the region.
The credits have been 43 percent of the actives of the banking system.
The central bank said, however, that the world crisis may also have its impact in Albania with less remittances brought in the country. Albanian immigrants bring about 1 billion (US$1.35 billion), which is between 13-15 percent of the GDP.
But some bank employees said off-the-record they have seen an increase of individuals withdrawing their savings.
Many Albanians fear what happened to them in 1997 when the fall of the pyramid investment schemes collapsed and they lost their life savings.
There are 16 commercial banks operating in Albania.
Fullani was also asked whether the IMF should continue to stay in the country.
The government has recently hinted it does not want the IMF in the country after its project ends in January.
Though not directly confirming he is against that decision, if taken, Fullani considered the IMF as the best certifier of the national balance and statistics, the “guarantor of our macro-financial policies, no doubt the best guarantor to accompany Albania toward the European doors.”