Experts from central banks discuss Euro interest rates and their effect in the Western Balkans

Press releases, 04.05.2017

Negative interest rates in the Eurozone have an influence in financial policies of Western Balkan countries. To assist with a proper response SECO – Swiss State Secretariat for Economic Affairs – with the Bank of Albania and the International Monetary Fund brought together experts from the region’s central banks

Bank of Albania Governor Gent Sejko with Swiss Ambassador Christoph Graf and IMF representative Miguel Savastano
Bank of Albania Governor Gent Sejko with Swiss Ambassador Christoph Graf and IMF representative Miguel Savastano. FDFA

For two days – May 4th and 5th – experts and representatives from central banks in several countries will be discussing and exchanging experiences and prepare for the necessary policies regarding Eurozone's negative interest rates. They are addressing the effect this has on Western Balkan countries and the measures to be taken to ensure financial stability.

Swiss Ambassador in Albania, Christoph Graf, during the opening speech stated that macroeconomic stability and a healthy financial sector are crucial for economic growth.  He expressed his conviction that countries that have not adopted the Euro currency can learn from each other on how to best respond to the effect Eurozone has on their financial sector. “The topic of today’s conference is relevant for  a sound, healthy, transparent and predictable relationship between the Western Balkans and Europe, that extends in the area of macroeconomic stability”, said Ambassador Graf.

Bank of Albania Governor Gent Sejko explained that the financial sector in Albania but also in the region is affected by banks coming from Eurozone countries that had to shrink due to new rules adopted by the European banking sector following the financial crisis.  “In the short term, adapting to this new rules is a challenge for the countries of this region”, said Governor Sejko.

The two-day conference includes three sessions that will focus on managing currency reserves, financial stability challenges, and developing proper monetary policies in the face of negative interest rates coming from the Eurozone.

High level representatives from central banks in Western Balkan countries include those from Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia. In addition, present  at the conference are also representatives from central banks from Switzerland, Hungary, Bulgaria and Croatia.  

At the end of the conference banking experts will have exchanged experiences and views and come up with conclusions on what monetary policies to adopt in order to mitigate the risks associated with negative Euro interest rates.