The European Central Bank (ECB) last week launched a euro system co-operation programme with the Bank of Albania (BoA), the Central Bank of the Republic of Kosovo (CBRK) and the National Bank of the Republic of Macedonia (NBRM). The programme aims to prepare the three central banks to join the European System of Central Banks (ESCB), once the countries qualify for European Union (EU) membership.

The EU has allocated €500,000 to the programme from its instrument for pre-accession sssistance. The programme will be implemented by the ECB in partnership with the Deutsche Bundesbank, the Banque de France, the Banca d’Italia, the Central Bank of Malta, The Netherlands Bank, the Austrian National Bank, Bank of Portugal, Bank of Slovenia and the National Bank of Slovakia. Experts will also be provided by the Bulgarian National Bank and the Czech National Bank.

The programme will first prepare ‘needs assessment reports’ for the Albanian and Kosovan central banks, identifying further progress needed to meet EU central banking standards. A similar assessment was completed in July last year for the Macedonian central bank – finding over a nine-month process the NBRM already has practices and policies in place that are “equal or close to EU standards in many areas”, though further work remained to be done.

To lay the foundations for this co-operation programme, the first interim report was signed in Tirana today by Yves Mersch, member of the executive board of the ECB; Ardian Fullani, governor of the BoA; Bedri Hamza, governor of the CBRK; and Fadilj Bajrami, vice-governor of the NBRM.

Announcing the launch of the programme, Mersch said: “Strong central banks are key for monetary and financial stability in Europe and around the world. With this joint initiative, the central banking community in the EU stands ready to support our colleagues in the western Balkans in their endeavour to introduce the highest standards, for the benefit of their countries and people.”

Fullani added: “The ultimate goal of the ECB’s technical assistance goes beyond the transfer of expertise.