In this context,Read: Another 9 days deadline. The Employment Agency provides 500,000 ALL in aid to people with a business ideaContinued commitment to transparency and accountability, supported by strong Public Finance Management (PFM) systems, remains a priority. Measures to increase transparency and accountability regarding the expenses incurred through emergency procedures should be implemented as soon as possible, as well as the use of reconstruction funds should be subject to standard public finance management controls.
We welcome progress to create a Phone Database public register of beneficial owners and look forward to the imminent completion and publication of the State Audit Office's audit report on earthquake and pandemic-related spending in 2020.The easing monetary policy remains appropriate if inflationary pressures are contained The easing monetary policy of the Bank of Albania (BSH) continues to be appropriate, as inflation remains below the target and expectations are well-anchored. We expect the increase in the consumer price index—resulting from international increases in food and energy prices—to be transitory. A shift in the direction of monetary policy tightening should be based on data, and clear indications of expanding sustained inflationary pressures.
The flexibility of the exchange rate has served Albania well and will continue to play the role of shock absorber. The banking system remains stable and liquid.A focused Asset Quality Review (RCA) exercise by the Bank of Albania may be considered to accurately assess the impact of the pandemic on banks' asset quality and capital levels. Bank capital reserves should be maintained until the full impact of the pandemic on asset quality is known. The risk of increasing non-performing loans highlights the importance of strengthening the legal framework of extraordinary intervention and bankruptcy. The regulatory framework for dealing with large borrowers with substandard loans in more than one bank (called the Tirana approach) should also.