Central Bank Urges Albanians to Up Savings

Tirana | 17 April 2009 | By Gjergj Erebara
Albania Central Bank Governor Ardian Fullani has pleaded citizens to put their money in banks instead of keeping them under mattress in a bid to see off some of the worst effects of the economic downturn.

“I would like to appeal to the common citizens, because the way in which you react in these times will determine the outcome,” said Fullani in parliament.

“Citizens should turn back their savings to the banks because if they will act in a responsible way, the global financial crisis will affect us less,” he added.

According to Fullani if the pseudo-philosophy of micro-protectionism will conquer the average citizen, then “the financial crisis will deteriorate to an economic crisis.”

Following the collapse of Lehman Brothers in the US, Albania faced a bank run. Deposits in the banks fell from 700 billion leks (5.7 billion euros) in September 2008, to 638 billion leks, (4.9 billion euros) in February 2009.

The Albanian government faced difficulties in refinancing its debt during last months but the market tended to stabilise during March. Interest rates for 12 month treasury bills jumped to 9.13 percent, almost one percent, within a few months.

Fullani also recommended to the government to seek outside help for money in order to avoid a second liquidity crisis.
Source: Balkaninsight

Short URL: http://www.albanianeconomy.com/news/?p=1846

Posted by Gjergj Erebara on Apr 17 2009. Filed under Banking & Finance, Economy, Top News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry