Albania : Eighth Review Under the Extended Arrangement and Request for Modification of Performance Criteria-Press Release and Staff Report

In February 2014, the Executive Board approved a three-year Extended Arrangement with access equivalent to SDR 295.42 million (212.1 percent of current quota). So far, six purchases totaling the equivalent of SDR 209.49 million have been made, and another one equivalent to SDR 28.65 million will be made available upon completion of the eighth review. The economic recovery is strengthening, supported by large energy-related investments and a gradual recovery in domestic demand. The current account deficit is widening due to import-intensive FDI. Inflationary pressures, however, remain subdued and the exchange rate has been broadly stable vis-à-vis the euro. Despite substantial monetary easing, credit growth remains sluggish, constrained by the still sizable overhang of nonperforming loans (NPLs) on bank balance sheets.