The Economic Commission of the Democratic Party of Albanians (DPA), led by Bardul Dauti at a news conference, outlined proposals to improve monetary policy in the country and improve sectors affected by the coronavirus situation.
He stressed that fiscal policy under difficult conditions for private sector liquidity has no potential to generate budget revenue as it would under normal circumstances and that it is powerless as an operating instrument to strike the liquidity balance between the public and private sectors.
According to Dauti, the restructuring of bank loans in unpredictable cases can be done through an unconventional monetary instrument.
“That is, the value of total new loans and restructured loans to the sector affected by Covid-19 should be regarded as a deduction from the principal on which the reserve requirement is based. We believe that this unconventional central bank monetary instrument in this case can be used to support the economy, the citizens, and especially the economic sectors affected by Covid-19, Dauti said.
