Albania Slashes Interests Rate

Tirana, Jan. 28, 2008 (AE) – The Bank of Albania decided on Wednesday to slash its base interest rate by 0.5 per cent, after weeks of heavy pressure from banks and media. REPO interest rate is now 5.75 per cent.

Bankers, experts and media demanded lower interest rates since December.

“Interest rates should have been cut since December”, – former Central Bank Governor Shkelqim Cani, told to local press last week.

Leading bankers urged for lower basic interest rates, early this month. “We have seen reduction in industrial production, job looses and lower remittances”, Oliver Whittle, CEO of Raiffeisen Bank said. “I would welcome a reduction on interest rates”, he added.

Bank of Albania changed basic interest rate in December 2007 for the last time.