Businesses Could Save 1 Billion Lekë a Year” — Sejko: Albania to Join TIPS System in November

Albania is expected to complete its integration into European payment systems in November. Bank of Albania Governor Gent Sejko announced the news during his monthly briefing with the media.

According to Sejko, the use of instant payments will enable citizens and businesses to save time and money.

The Bank of Albania still needs to complete the implementation of the TIPS Clone system, a version of the Italian instant payment system. The project is being developed in cooperation with the Bank of Italy, the European Central Bank and the Albanian banking system.

The governor said the objective is for the system to become operational in November, by the end of that month at the latest. Once this is achieved, the country will be fully integrated into European payment systems, following its membership in SEPA.

“It is true, and I followed and listened to Ms. Lagarde’s statement. We anticipate, and our objective is, to have the TIPS Clone system operational in November, by the end of November at the latest. It is a clone of the European instant payment system, as we call it,” Sejko said.

He explained that preparations for the project began some time ago and are now in the intensive and final stage of implementation.

The new platform is expected to provide significant benefits for Albanian consumers, individuals and businesses, as transfers will be carried out faster and at a lower cost. According to the governor, it is an advanced system used in all European Union countries.

Following its membership in SEPA, the Single Euro Payments Area, the Bank of Albania continued working to establish TIPS Clone in cooperation with the Bank of Italy. Once this process is completed, Albania will be integrated into both SEPA and the instant payment system.

“Therefore, we should be pleased and understand that, from the perspective of payment systems, we will be fully integrated into the European system in November,” Sejko said.

Bank of Albania calculations show that the benefits to the economy could be significant if electronic payments are widely used. Under this scenario, the financial system could save up to 35 billion lekë, while the Albanian economy as a whole could save up to 38 billion lekë a year.

If only half of all payments and transfers were conducted through TIPS Clone, individuals’ annual savings are projected at around half a billion lekë. Businesses would save around 1 billion lekë a year.

The governor stressed that, in addition to bringing payment practices closer to European standards, the new system would also help formalize the economy and expand financial inclusion for citizens and businesses.

Sejko confirmed that the Bank of Albania aims to make TIPS Clone operational during November, in line with the statement by European Central Bank President Christine Lagarde.

During the press conference, Governor Gent Sejko also presented the Supervisory Council’s monetary policy decision.

On August 5, 2026, the Supervisory Council of the Bank of Albania reviewed and approved the Quarterly Monetary Policy Report.

Although the international situation remains difficult, the latest data indicate that the Albanian economy maintained positive momentum during the second quarter of the year.

Economic activity continued to expand at a similar pace, though slightly slower than in the first quarter. Consumer price inflation rose due to the direct and indirect effects of higher oil prices on foreign markets, as well as sustained demand for goods and services. Despite this, inflation remained under control and close to the Bank of Albania’s target.

These developments are in line with the Bank of Albania’s expectations and also reflect the effects of its prudent monetary policy. This policy has helped keep inflation expectations under control, ensure the normal functioning of financial markets and create appropriate monetary conditions for sustainable, long-term growth.

Updated forecasts indicate that the Albanian economy will continue to grow at a positive rate and close to its potential. In the short term, inflation is expected to remain close to, but above, the Bank of Albania’s target, before gradually declining toward the target over the medium term.

According to this assessment, the supply shock originating from international markets will have a temporary impact on the Albanian economy. For this reason, the Supervisory Council decided not to change its monetary policy stance.

Average consumer price inflation stood at 3.0% in the second quarter of the year, rising compared with the previous quarter. However, the increase was considered contained and in line with the Bank of Albania’s forecasts.

Inflation trends were affected by prices on international markets, in line with developments in partner economies, as well as by high and sustained aggregate demand in the country. According to the governor, the increase recorded during the second quarter had been expected.

Within the consumer basket, upward pressure came mainly from transport prices, unprocessed food and certain services. By contrast, inflation in regulated-price items declined, while rental prices continued to remain relatively high.

At the macroeconomic level, inflation was driven by stronger domestic and external pressures. High demand for goods and services was reflected in a positive cyclical position for the economy and an increase in core and domestic inflation during the second quarter.

Higher prices for oil and energy products on foreign markets also contributed to imported inflation, both directly and indirectly. This effect was only partially mitigated by the appreciation of the exchange rate.

The Bank of Albania believes that, excluding high rental inflation, which is expected to be temporary, domestic pressures remain consistent with the price stability target.

Available data indicate that the Albanian economy continued to grow at solid rates during the first half of the year. At the same time, public and external debt declined, the financial balance sheets of businesses and households remained liquid, the banking sector remained stable and resilient to shocks, and financial markets continued to be calm.

Economic expansion is being supported by the private sector’s sound financial position, expectations for the future, tourism revenue, and favorable monetary and financial conditions.

INSTAT data show that domestic economic activity grew by 3.7% in the first quarter. This growth was supported by household consumption, business investment, and exports of goods and services.

Meanwhile, fiscal policy continued to be consolidating in nature, and the fiscal impulse remained negative. Indirect indicators for the second quarter point to solid economic growth, although at a somewhat slower pace than in the previous quarter.

The Bank of Albania also attributes this performance to the contribution of prudent monetary policy. Its timely and consistent response to inflation developments has helped preserve price stability, anchor inflation expectations, maintain calm in financial markets and slow the appreciation of the exchange rate.

This policy has also contributed to improved financing conditions. Financial markets have continued to enjoy ample liquidity, low interest rates and a positive approach to lending.

Financial conditions have been reflected in the rapid and broad expansion of credit to the private sector. The loan portfolio grew by 14% year-on-year during the second quarter.

Lending continued to be directed primarily toward financing business investment and home purchases by households. This indicates that bank financing continues to support private consumption and investment, making a positive contribution to economic growth.

Another notable development is the growing shift in private-sector lending toward the lek. At the same time, portfolio quality remains sound, as demonstrated by the continued decline in the non-performing loan ratio.

The revised baseline scenario indicates that the Albanian economy will continue on a positive development trajectory.

Economic activity is expected to continue expanding in the period ahead. Growth will be supported by private-sector liquidity, favorable financial conditions and positive expectations, reflected in consumption, investment, employment and higher wages.

However, the pace of economic growth is expected to slow slightly over the next two years. This is expected to create conditions for a better balance between aggregate demand and supply.

Consumer price inflation is projected to remain slightly above target in the short term and gradually return toward it over the following quarters.

The forecast for above-target inflation in the short term is linked to expectations that the indirect effects of the supply shock in international markets will persist, as well as to relatively high rental inflation during this period.

The gradual decline in inflation toward the target over the medium term is supported by expectations of a more balanced relationship between aggregate demand and supply, controlled growth in production costs, and anchored expectations among businesses and financial markets.

The baseline scenario is also based on the assumption that supply pressures in international markets will normalize quickly and that fiscal policy will retain its consolidating stance in the coming years.

However, geopolitical tensions in the Middle East continue to be a source of risk and uncertainty for both the global and Albanian economies. The effects of the conflict on international markets keep the balance of risks tilted upward for inflation and downward for economic growth over the medium term.

Based on this assessment, the Supervisory Council of the Bank of Albania decided to keep the key interest rate at 2.5%, the overnight deposit rate at 1.5% and the overnight lending rate at 3.5%.

The Council assessed that the current monetary policy stance is appropriate under present conditions. This stance supports the implementation of the baseline scenario and provides the Albanian economy with the monetary conditions necessary to return inflation to target.

The current policy also takes into account uncertainty surrounding economic and inflation developments, as well as the dampening effect on inflation of a consolidating fiscal policy and the appreciation of the exchange rate.

The Supervisory Council emphasized that monetary policy decisions will continue to be guided by the objective of price stability. According to the Council, inflation that remains above target for a prolonged period or deviates significantly from it could develop into persistent, long-term inflationary pressures.

For this reason, the Council will continuously monitor the situation and, based on new data, stands ready to respond at the necessary time, in the necessary direction and to the necessary extent to any material risk to price stability.