Basic interest rate

“By reducing the cost of finances, Bank of Albania aims to increase the number of loans, consumptions and investments. This mechanism encourages demand and creates good conditions for respecting the middle-term objectives of inflation”, Fullani declared.

The Bank says that economy is still under strong pressure from the crisis, and 2013 will be a difficult year.

“The progress reached so far by the economic activity and the plans for 2013, expect a positive growth similar to that of the last year”, Fullani underlined.

Earlier during the month, the EBRD declared that the Albanian economy grew with 1.8% in 2012, and corrected their previous evaluation positively.

On October EBRD had declared that the economic growth for 2012 would be 0.6%, but the good growth of the third trimester has changed the final evaluation.

For more than one year, Bank of Albania has reduced the interest rate.  As the Governor himself admitted, its effect in economy has been limited due to the high level of uncertainty.

The credit growth among the private sector has reached its lowest point, while the only effect of the interest rate reduction was seen in the reduction of the treasury bills, through which the government borrows from the domestic market.

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