In line with the cyclical situation, this policy has provided its stimulus through the key interest rate cut and ongoing liquidity injection into the banking system. We have also revised the banking system regulatory basis from the viewpoint of easing it, in order to stimulate lending by the banking system. I avail myself of the opportunity to reiterate that the banking system remains profitable, liquid and well-capitalised. Safeguarding the stability of this system will always be on our focus. BIS central bankers’ speeches  1  Third, reducing uncertainties and risk premiums in the economy is an important priority. As I have already stated, these uncertainties stem, to a great extent, from the foreign market, but a part of them stems from the Albanian economy. Without intending to make a list, I will mention just a few: •  Reducing informality should be a primary objective. Besides outflows in public finances, informality brings hidden costs in terms of diminishing competition, inefficiency in terms of lack of balance sheet transparency, and artificially increased financing costs to businesses. •  Fostering the financial system infrastructure protection is another aspect deserving attention. The Bank of Albania signed and has already made effective a cooperation agreement with the People’s Bank of China, which also provides for the possibility to obtain liquidity in case of need. An important step in this regard is the agreement between the Deposit Insurance Agency and the European Bank for Reconstruction and Development to increase the deposit insurance coverage.

We deem that there is room for other agreements with international financial institutions specialised in providing funds and assistance. Establishing collective public protection releases the financial system and businesses from setting up individual protection. Besides, it may be transformed into a necessary source of funds for the Albanian economy. •  Improving the business climate further and observing the contract enforcement. The business climate is a rather complex issue, but I would highlight two issues here. First, the payment of deferred budget liabilities as a priority. In spite of the financial cost, it is an important step for easing the debt burden in the economy and signalling the political willingness to guarantee contract enforcement. •  Second, the improvement of by-laws that regulate the collateral enforcement and write-off of bad debt from banks’ balance sheets. The definitive solution to this problem would signal to the banking system that Albania is a country where lending is safe. All these steps would stimulate the economic activity and restore economic equilibrium. However, the Albanian economy is also suffering from structural weaknesses, which restrict the growth rate. I would not like to examine this aspect in detail but I think it's reasonable to reiterate my message that Albania should speed up structural reform. It should be anchored to the EU convergence process and aim at adopting its best models and rules. Through public investment and economic incentives, it should aim at a more effective and competitive economic structure, capable of generating a rapid and sustainable growth.