monetary policy functions exist, the ecb will strictly respect the principle of separation between monetary policy and banking supervision, as foreseen in the ssm regulation. such separation will ensure that the ecb will continue to fulfil its primary mandate of price stability in complete independence, in line with the treaty. the effective separation of monetary policy and bank supervision decisions will be implemented both at the decision making level and at the technical staff level. a separate supervisory board will be created to draft and enforce decisions. furthermore, deliberations of the governing council on supervisory matters will be strictly separated from monetary policy decisions. this separation between the two tasks will be underpinned by separated agendas and meetings. finally, let me say a few words on the involvement of the ecb in the troika. back in 2010, we were asked by the council to provide our technical expertise to the design and monitoring of eu / imf financial assistance programmes. in the meantime, the ecb has been allocated a number of specific tasks by the esm treaty and eu secondary legislation. we act in liaison with the commission to provide technical advice, based on our expertise. as we have done in the past, we remain ready to share our views on the situation in programme countries with the european parliament and to explain the advice provided as part of the troika. however, it is important to recall that the eurogroup is the body which actually decides whether to grant financial assistance and under which terms. thank you for your attention. i am now looking forward to your questions. bis central bankers ’ speeches

. seasonal tendency of prices ’ behaviour was confirmed to have the same intensity even during this period, by keeping the inflation value at the same rate with that of the preceding month. the average annual inflation marked 2. 2 percent, equal to the value of the previous year, revealing the full elimination of the first round effects of the previous year increases in terms of raw material and electric prices. fiscal policy persisted to be also expansionary during july, notwithstanding at more moderated paces. budget revenues stood at the same rates of projection fulfilment with the previous months – accounting for 94 percent – while expenditure were met by 98 percent of the projected target, maintaining the same level with the three previous months. this effect provided advantage to the expansion of budget deficit in this period. as we have underscored even previously, the increase of both budget deficit and public expenditure does support the economic activity in terms of a low demand of the economy, but it also is accompanied by the increasing tendency of the public debt interest rates. the increasing review of public expenditures and budget deficit rate is forecasted to preserve this effect even during the remaining part of 2009, while a more balanced fiscal position for 2010 would reduce the pressures on monetary markets, by establishing more spaces for the rise of monetary stimulus. the external sector data regarding second quarter 2009 reveal a further reduction of the albania trade exchanges with the rest of the world in annual terms. according to preliminary data, these development tendencies have persisted even during july 2009. exports decreased by 17 percent relative to the same month of previous year. imports performance incurred the same development declining by about 8 percent in annual terms. external economy developments are accompanied by the maintenance of high trade deficit rates, which affect the imbalance of the demand to supply ratios for foreign currency in the economy. nevertheless, the maintaining of the exchange rate flexibility, the correcting tendency of trade deficit and the attraction of savings denominated in all, as higher interest rates and of low inflation, serve to relaxed and prudential volatilities of the exchange rate and to a strong position of all in the short - term and medium - term period. monetary indicators of july have reflected the more relaxed dynamic of financial intermediation. external sector highlights of the economy have affected the negative paces of the foreign currency component of money stock. however, banking system carried out the intermediation to increase lending in all extended to private and public sector with positive paces. thus, while monetary supply picked up at slower annual paces