These decisions have aimed at creating the appropriate conditions for boosting domestic demand, and for the return of inflation to target in the medium term. Moreover, our monetary  BIS central bankers’ speeches  3  policy has been transmitted in lower interest rates across all financial instruments in the domestic currency. During the fourth quarter, the transmission was also helped by the shift of the budget deficit financing, from domestic to foreign resources. The shift has increased the liquidity in domestic financial markets significantly and has reinforced the downward trend of their interest rates. Consequently, the average interest rate on loans dropped further during 2015. Combined with the measures taken for reducing non-performing loans, monetary stimuli were reflected in the easing of credit standards. Excluding the effect of write offs from the balance sheets, credit to the private sector grew by ALL 12 billion, or 2.2% in the past year. The monetary policy pass through was reflected also in the reduction of the euroisation in the Albanian economy. At the end of 2015, lek credit to the private sector amounted to 41% of total loans, from 32% at the end of 2010. The Bank of Albania expects credit to perform better in the medium term, but this projection remains largely dictated by the further improvement of the crediting climate in Albania. Against this backdrop, I take the opportunity to reiterate that the national plan for addressing non-performing loans should be considered as a non-negotiable prerequisite for the growth of credit in the future.

At the same intensity, we strengthened the cooperation with the International Monetary Fund, the World Bank and the Bank for International Settlements, as well as regional central banks. The Bank of Albania has continued its contribution to the reporting for the Progress Report and the National Plan for European Integration, leading Chapter 4 “Free movement of capital” and Chapter 17 “Economic and monetary policies” and contributing in 6 other chapters of the Acquis. x. Human resources  Improvement to the organisational structure of the institution has constantly been at the focus of human resources policies, with the main aim to enhance the efficiency of the activity of the Bank of Albania. It seeks to provide a better coordination and communication between the units, especially the successful implementation of engagements arising from strategic objectives and the approximation with the model of the European System central banks or the European Central Bank. The policies in the area of human resources have aimed at promoting the most experienced and proficient employees, through a professional competition. Staff motivation policies have aimed at preserving the stability and continuity of staff. Particular attention has been paid to observing gender equality. The professional development of the staff is realised, among others, through participation in specialised training organised by central banks or international financial institutions. In addition to enhancing professional capacities, there are also possibilities for the exchange of professional experiences and familiarisation with the most contemporary central bank theories and practices. BIS central bankers’ speeches  7  xi.