The Bank of Albania has run a deficit for the first time ever since its foundation. According to the financial reports, the deficit for 2021 amounted to €15.8 million.

The main blow to its expenses came from the negative interest rates that it has to pay to the Central European Bank for its currency reserves.

In total, the bank paid €10 million to hold €4.8 billion in this reserve.

The revenues that come in from the emissions of 1-day loans to second-level banks have also decreased due to a decline in interest rates.

Over the years, spending for the Bank of Albania has also gone up considerably.

Payments to personnel have gone up by €500,000 this year and a staggering €1.2 million since 2013, when this institution counted 504 employees as opposed to 609 that are currently employed.

Another high bill has come as a result of the reconstruction of the Dajti Hotel, where the Central Bank will set up its new office spaces.

This will be the first time that the Central Bank won’t bring in any profits to the state budget.

A decade ago, the funding that was allocated to the state budget from this bank was around €40 million, whereas in recent years that has gone down to €11.5 million for 2021 and €4.7 million during the pandemic.

EuroNews Albania