Bank of Albania Governor Gent Sejko speaks about the Sovereign Guarantee

Gent Sejko in a press release today

 The Governor of the Bank of Albania, Gent Sejko, said today that the sovereign guarantee has not yet been completed, while about two months have passed since the explosion of the COVID-19 pandemic.

He said banks are currently operating with the first sovereign guarantee of employees' salaries.

"The sovereign guarantee for the business is not over yet, normally we will see the effect when it is presented, at the moment the banks are operating with the first sovereign guarantee for the salaries of the employees. We have about 70 approved cases, 8.5 million euros, but there are 300 other applications in the process. It is a guarantee being elaborated in the banking system. The second will be seen when it becomes valid, and then we will have a clearer idea," said Sejko at the press conference.

He added that due to coronavirus, the effects will be strong in the economy, as in the rest of the world.

"The forecasts are for recession. We are clear on this part. We need to keep in mind that this is a temporary setback and we need to take steps to find the one that is most prepared for us. We need to maintain the production chain, with as few bankruptcies as possible.

Maintaining financial and price stability are priorities. The economy had another shock from the earthquake, and we had previously predicted a 3-4% increase, but the effects have worsened and we are in the same terms as the IMF and the WB relating to recession levels. There is a high degree of uncertainty in forecasts. We hope that the opening will be gradual and an increase in the tourism sector that is the key," he said.

In his statement, he presented the situation in the country as a result of COVID-19.

"The health emergencies caused by the spread of COVID-19 and the measures of the public authorities to control it in Albania and the world pose a challenge to financial stability, the health of business and family finances, and the sustainability of economic growth in the medium and long term.

COVID-19 will have a photo impact on all economic and financial indicators of the country.

Measures of social distancing and increasing insecurity have led to a general slowdown in exports, household consumption, and investment. The falling output will lead to rising unemployment. This situation will depend on the duration of the pandemic," said Sejko.