solutions aimed at improving the bank ’ s service delivery. as we tackle issues of inflation, exchange rates, and other key macroeconomic indicators, let us use this forum to outline some of the past developments and challenges that lie ahead of us as we aim to taking zambia ’ s financial sector to higher heights. lastly, let me say that while we can all learn from what other central banks have done, each country should establish the legal framework for its central bank, and allow for its evolution, in ways which best fit that country ’ s own history and institutions. i have no doubt that the symposium will be thought - provoking and highly participatory. may i wish all of you a good symposium and a memorable stay in livingstone and zambia in general. i thank you.

the points raised by central bank and authorised it to borrow abroad in the name of the treasury in order to strengthen its foreign reserve substantially, while the government was also mandated by parliament to strengthen the bank ’ s capital position. the board of governors would like to thank the government for such a good, firm response. the foreign loan that the central bank was authorised to take was its largest on behalf of the treasury so far. it can only be said that this was a highly successful measure – in fact, a respected international financial journal ranked it one of the ten most successful international bond issues worldwide last year. the borrowing terms were very favourable and of course reflected the confidence enjoyed by the republic of iceland in the market. the central bank ’ s greatly enhanced capital position and stronger foreign reserves do not signal any shift in its policy, but represent a natural response to changes in the environment in which the bank operates. at last year ’ s annual meeting we all had serious concerns about the peculiar discussion and sometimes unfounded speculation aired then about the icelandic banks, their position and strength. there is no doubt that this debate and the ensuing events made conditions tighter for the banks for a while. the banks responded firmly to the uncomfortable position that had arisen. they made great efforts to explain the structure and organisation of the icelandic banks. this was no half - hearted measure, but a steadfast and confident approach which produced results. the banks adjusted certain aspects of their operations and operating environment in response to relevant criticisms, and dismissed what was less relevant with explanations, reports and candid communication, at large meetings, small meetings and man - to - man, depending upon which was most productive. they needed temporarily to look beyond their traditional markets for funding, and unquestionably these conditions put their resources and management under strain. it can definitely be said that those involved passed this difficult test. the funding problem that loomed around this time a year ago is a thing of the past, terms in the secondary market have been normalised and market confidence has been restored. this is to be welcomed. what remains, however, is of course that people are now more aware of the widespread risks that the future may hold in store. global market conditions can change suddenly. credit access, which in recent times has been exceptionally favourable for icelandic and other banks, may change suddenly if unexpected conditions arise. it is important to be prepared for such a contingency. at the height of this furore, i would venture to say that the