In November, Albania will take the final step towards full integration into the European payment system. This was announced by the Governor of the Bank of Albania, Gent Sejko, in his monthly communication with the media.

According to Governor Sejko, businesses and citizens, through fast payments, gain time and save significant income.

"After implementing the SEPA system, the Bank of Albania is working together with the Central Bank of Italy and the ECB to implement the TIPS system, which is a clone of the Italian one. With this step, which will be completed in November, we will be fully integrated into European payment systems, saving time and money. If only half of the payments were to go through the TIPS system, individuals would save half a billion lek while businesses would save 1 billion lek per year. This is also in line with our objective of formalizing the economy," said Governor Sejko.

Question: The President of the European Central Bank, Christine Lagarde, stated last week that she expects Albania to join the TIPS Clone platform in November. Does this target date also remain for the Bank of Albania and what will be the concrete benefits that this platform will bring to Albanian citizens, businesses and the economy?

Governor, Gent Sejko: It is true and I followed and heard Ms. Lagarde's statement. We anticipate and our objective is that in November, at the latest by the end of November, we will be effective with the implementation of the TIPS Clone system, which is a clone of the European instant payments system, as we call it.

The Bank of Albania has been working on this project for some time and we are currently in an intensive and final phase of implementing this system, in cooperation with the Bank of Italy, the European Central Bank and the banking system in the country.

Of course, this is a fast payment system, which will create great convenience and savings in both time and money, for all Albanian consumers, individuals and businesses. It is a very advanced system, which is used in all countries of the European Union.

The Bank of Albania, after joining and implementing the SEPA system (Single Euro Payments Area), has worked and is working to implement the TIPS Clone system, i.e. cloning the TIPS system, in cooperation with the Bank of Italy. Practically, with the implementation of this system, we will be fully integrated with the European payment system, both in SEPA and in the fast payment system. So, we should be satisfied and understand that, from the point of view of payment systems, in November we will be fully integrated with the European system.

The analyses and calculations we have made show that the Albanian economy will benefit significantly. If we have a wide inclusion of electronic payments with the implementation of TIPS Clone, the financial system will generate potential savings of up to 35 billion lek, while the economy as a whole will generate savings of up to 38 billion lek per year. This is a prediction that is based on a wide use of electronic payments after the implementation of the TIPS Clone system.

Meanwhile, our calculations show that even if only half of payments and transfers are made through the TIPS Clone system, individuals will save about half a billion lek per year, while businesses will save about 1 billion lek per year. These are significant savings, both at the economic level, and for individuals and businesses, as a result of the implementation of this system.

What is important is that this system not only brings us closer to European integration in the field of payment systems, but also goes hand in hand with our objectives in the fight against informality and in increasing the financial inclusion of the population and businesses.

However, to directly answer your question, I confirm that we anticipate being operational with the TIPS Clone system in November, as communicated by the President of the European Central Bank, Ms. Christine Lagarde.

Governor Sejko's full speech at the press conference on monetary policy decision-making

Today, on August 5, 2026, the Supervisory Council of the Bank of Albania reviewed and approved the Quarterly Monetary Policy Report.
Although the external environment remains challenging, new data analyzed suggest that the Albanian economy has continued to maintain a positive development trend in the second quarter of the year.

The volume of economic activity has continued to grow, at comparable rates, although somewhat lower than those of the first quarter. Consumer price inflation increased, as a result of the direct and indirect effects of the increase in oil prices in foreign markets, as well as the stable demand for goods and services. However, the level of inflation remains controlled and close to the Bank of Albania's target.
These developments were in line with our expectations. Among other things, they also reflect the effect of the prudent monetary policy pursued by the Bank of Albania. This policy has enabled the control of inflation expectations, the smooth functioning of financial markets, and has contributed to the generation of appropriate monetary conditions for the country's sustainable and long-term growth.

The updated projections suggest that the Albanian economy will continue to remain on a positive growth trajectory and close to potential. Inflation is also expected to remain close to, but above, target in the short term and gradually decline towards target in the medium term. In these circumstances, the supply shock from international markets is expected to have transitory effects on the domestic economy.
Based on these considerations, the Supervisory Council decided to keep the monetary policy stance unchanged.
[ Allow me to provide you, below, with a more detailed overview of our opinion on economic and financial developments, as well as detail the monetary policy decision and the reasons that motivated it. ]
Consumer price inflation averaged 3.0% in the second quarter of the year, up from the previous quarter. However, the increase in inflation in the country has been contained and this indicator continues to be in line with our expectations. This performance was dictated both by the performance of prices in international markets, in line with developments in partner economies, and by the high and stable level of aggregate demand in the country.
The increase in inflation in the second quarter was in line with our expectations.

From the perspective of the structure of the consumer basket, the increase in inflation during this quarter was influenced by the increase in prices of transportation, unprocessed food and some service items. On the other hand, inflation of regulated items decreased, while inflation of rental prices continued to remain at relatively high levels.
In macroeconomic terms, inflation performance during this period has been driven by rising domestic and foreign inflationary pressures. In particular, high demand for goods and services has been reflected in a positive cyclical position of the Albanian economy and in rising core and domestic inflation during the second quarter. Similarly, the increase in the price of oil and energy products in foreign markets has had direct and indirect upward effects on imported inflation, effects which have been only partially mitigated by the strengthening of the exchange rate. However, excluding high rent inflation, which is expected to be transitory in nature, domestic pressures remain in line with our price stability objective.
Available information suggests that the Albanian economy has continued to grow at a solid pace during the first half of the year. In parallel, public and foreign debt have been declining, the financial balance sheets of businesses and households are liquid, the banking sector appears solid and resistant to shocks, while financial markets appear calm.

Economic growth continues to be fueled by sound private sector balance sheets, expectations for the future, tourism revenues, and favorable monetary and financial conditions. According to INSTAT data, the volume of economic activity in the country increased by 3.7% during the first quarter, supported by the expansion of household consumption, business investments, and exports of goods and services. On the other hand, fiscal policy maintained a consolidating nature and the fiscal impulse remained in negative territory. Indirect data for the second quarter suggest that the pace of economic growth has remained at solid levels, although somewhat lower than those of the previous quarter.

This picture reflects, among other things, the positive contribution of our prudent monetary policy. The timely and consistent response to inflation developments has made it possible to maintain price stability, control inflation expectations, the smooth functioning of financial markets, curb the speed of exchange rate appreciation, and improve financing conditions.
Financial markets continue to be characterized by ample liquidity, low interest rates, and a positive approach to lending. These financial conditions are reflected in the rapid and broad-based expansion of credit to the private sector. The loan portfolio recorded an annual growth of 14% during the second quarter, continuing to maintain its orientation towards financing business investment projects and household housing purchases. This performance suggests that bank credit has continued to support the expansion of private sector consumption and investment, thus making a positive contribution to economic growth. Private sector lending is also showing an increased orientation towards the Lek and continues to have good quality indicators, as seen from the continuous decline in the non-performing loan ratio.

The update of the baseline scenario forecasts suggests that the Albanian economy will continue to remain on a positive development trajectory in the future.
The volume of economic activity will continue to expand over the coming period. Economic growth will be fueled by the private sector's liquid balances, the favorable financial environment and expectations for the future, and will be reflected in increased consumption and investment, as well as employment and wages in the country. However, the pace of economic growth is expected to slow slightly over the next two years, creating the premises for a better balance of aggregate demand and supply.
In parallel, consumer price inflation is expected to remain slightly above target in the short term and gradually return towards it over the coming quarters. The forecast of an above-target inflation level in the short term factors in our expectations for the continuation of the indirect effects of the supply shock in international markets, as well as for a relatively high level of rental inflation in this time horizon. On the other hand, the forecast for a gradual reduction of inflation towards the target in the medium term is based on our expectations for a balanced performance of aggregate demand and supply, for a controlled increase in production costs, as well as the anchored expectations of businesses and financial markets. Furthermore, the baseline scenario is based on the assumption of a rapid normalization of supply pressures in international markets, as well as the maintenance of the consolidation direction of fiscal policy in the coming years.
However, geopolitical tensions in the Middle East remain a source of risk and uncertainty for the global and Albanian economies. The impact of this conflict on international markets keeps the balance of risks tilted to the upside for inflation and to the downside for economic growth in the medium term.

Based on the above, the Supervisory Council of the Bank of Albania decided:
• to keep the base interest rate unchanged, at 2.5%;
• to keep the overnight deposit interest rate unchanged, at 1.5%;
• to keep the overnight loan interest rate unchanged at 3.5%.
The Supervisory Council judged that the current monetary policy stance remains appropriate for the time being. This stance enables the fulfillment of the baseline scenario projections, providing the Albanian economy with adequate monetary conditions for the return of inflation to target. It also addresses the uncertainty over the future performance of the economy and inflation, as well as the inflation-reducing effect of the consolidation of fiscal policy and the strengthening of the exchange rate.
The Supervisory Board emphasizes that the monetary policy response will continue to be oriented, in any case, towards respecting the price stability objective. In this context, it notes that inflation above the target, prolonged over time or significantly deviated from it, risks turning into sustained and long-term inflationary pressures.
In this context, the Supervisory Council will carefully and continuously monitor the situation. Based on new data, it remains ready to react in a timely, appropriate and forceful manner to any material risk to price stability.