Crisis, Fullani appeals the EU

12/07/2012 18:55

The governor of the Albanian Bank, Ardian Fullani, invited in a
conference for the 20th anniversary of the “Joint Vienna” institute,
declared that the anti-crisis measures taken by the European Union,
which allow banks to regulate the loan balances in report with their
capitals, are damaging Albania and the other countries of the region.

“As result of the interpretation of the EBA regulation, one of the foreign banks that operate in Albania, the Albanian government’s exposure to debt decreased with 3% of the GDP within three months. These actions caused misbalances in the liquidity level in the international banking market, which could not be resolved quickly, due to the structural problems”, Fullani declared.

“These misbalances were followed with an increased interest rate for the treasury bonds by limiting the mechanism of the monetary policy transmission. The reduction of the exposure towards the treasury bonds of the government debt does not correspond with a similar increase of the exposure to debt for the private sector, by contributing with a lower loan increase”, he continued.

Fullani underlined that the financial burden of the new EU regulations is not being distributed equally, but it is hitting harder countries under development, such as Albania.

“For these reasons, I will profit from this opportunity for appealing all respective EU lawmakers to consider with the same attention the influence of their decisions in the economies that are under a convergence process. We are on the same boat and I believe that we must paddle on the same direction”, Fullani declared.

The governor added that the crisis that started in 2008 now is in its more acute phase and the measures that have been taken so far have not given the desired effects, calling for a closer cooperation in a regional level.

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