Norges Bank has been tasked with managing the fund since its establishment. The legislative basis for the fund is decided by the parliament, while the Ministry lays down the management mandate that is issued to Norges Bank. Moreover, the Ministry has established a practice whereby decisive changes are submitted to the parliament for approval. According to the management mandate, the Norges Bank shall seek to achieve the highest possible long-term real return with moderate risk. The mandate sets the benchmark index and tracking error limits. In addition, the mandate imposes constraints on the fund’s investment universe. The investment strategy is largely determined by the mandate. The role of the Bank and its Executive Board in formulating and elaborating the management mandate is to advise the Ministry. This is an important job. For the Ministry, the formulation of the management mandate, reporting and supervision will be important tools for ensuring that investments are managed in line with objectives. Thanks to its extensive reporting, the fund enjoys a reputation of being one of the world’s most transparent sovereign wealth funds. For a fund with the entire population as actual owners, transparency is 2/4  BIS central bankers' speeches  vital for ensuring democratic control and confidence in investment management. Chart: A large fund Since the first transfer to the fund was made in 1996, the value of the fund has risen to almost three times mainland GDP. During periods of substantial oil and gas revenues, large capital transfers have been made to the fund.

Ardian Fullani: Overview of recent economic developments in Albania Speech by Mr Ardian Fullani, Governor of the Bank of Albania, at the press conference on the Monetary Policy Decision of the Bank of Albania Supervisory Council, Tirana, 27 July 2011. *  *  *  Today, on 27 July 2011, the Supervisory Council of the Bank of Albania reviewed and approved the Monetary Policy Statement for 2011 H1. Based on the analysis of Albania’s latest economic and financial developments and following discussions on their performance outlook, the Supervisory Council of the Bank of Albania decided to leave the key interest rate unchanged at 5.25 %. The Supervisory Council holds that the actual monetary conditions are appropriate for meeting the inflation target and for continuing to stimulate the economic activity. Let me now proceed with an overview of economic developments and main issues discussed at today’s meeting of the Supervisory Council. *** The Albanian economy continued to grow during 2011 H1, although in the presence of added challenges generated by the internal and external economic developments. Tensions in global economies and financial markets, as well as increased prices of raw materials and foodstuff led to shrinkage of Albania’s economic activity. The first factor raised the uncertainty of economic agents as well as risk premiums in financial markets, while high inflation imported from world markets decelerated domestic demand and increased inflation expectations at home. Despite unfavourable factors, Gross Domestic Product posted growth and main macroeconomic balances and financial stability remained stable.