of logistics issue and delivery frame. however, with bases in and around the european and us market, textile industry is capable of meeting its commitments as well as going for high end designing studios to meet fashion requirements. • the it industry, showcase of emergence of indian economy, has its presence across the globe by way of subsidiaries to cater to business in a particular region. the acquisitions made by it companies are primarily for backward or forward value addition in their product profile. funding • overseas acquisitions are funded through a variety of sources such as drawal foreign exchange in india, capitalization of exports, balances held in eefc accounts, share swaps, ecbs / fccbs, adrs / gdrs, etc. • a substantial portion of investments takes place through special purpose vehicles ( spvs ) set up for the purpose abroad. existing wos / jvs or the spvs are being used to fund acquisitions through lbo route and such transactions are not currently captured in overseas investment statistics. the major investment destinations appear to be the us and european markets. tax havens like mauritius and cayman islands also feature significantly in the indian acquisitions or setting up of new wos / jvs. • in recent times, sustained growth in corporate earnings has boosted the profitability and strengthened the balance sheets of indian companies. this has, in turn, strengthened their credit ratings and ability to raise funds overseas. • unlike most international m & a transactions that typically feature stock swaps in the financing arithmetic, indian acquirers have for the most part paid cash for their targets, helped by a combination of internal resources and borrowings. share swaps have not yet emerged as a favored payment option in india, except in a couple of large transactions in the software industry. finance by indian banks : as per existing instructions banks are not allowed to finance the promoters ’ contribution towards the equity capital of a company as it should come from their own resources. however, in view of the expertise in certain areas developed by indian corporates over the years and the importance attached to leveraging of such expertise for enhancing the international presence of indian corporates, w. e. f june 7, 2005, banks have been allowed to extend financial assistance to indian companies for acquisition of equity in overseas joint ventures / wholly owned subsidiaries or in other overseas companies, new or existing, as strategic investment, in terms of a board approved policy, duly incorporated in the loan policy of the bank. such policy should include overall limit on such financing, terms and

commits today in the framework of this meeting to produce a dedicated publication, which will be presented every june, a period which coincides with the international day of family remittances, 16 june. last but not least, considering the coordination among state authorities as very important, as well as the constant communication with the private sector, we are signing today the memorandum of understanding. it is aimed at raising the awareness, facilitating dialogue and fostering effective cooperation between the parties on issues related to remittances from the albanian diaspora, contributing to economic development. the joint engagement we are initiating today is the first necessary step of a development platform for the empowerment and effective use of remittances. in conclusion, i would like to underline once again that it is time that we show more care, appreciation and gratitude to tens of thousands of albanians abroad, who, through sacrifice, continue to contribute to the welfare of our nation, sending a part of their savings to their families back home. we invite the banking industry and other actors in the financial system to contribute to this initiative, with concrete vision and products, taking into account that you can play a special role in effectively mobilising remittances. reasserting our institutional support and commitment for this initiative, i am confident that this will be an on - going dialogue to facilitate every undertaking in the aspect of remittances. thank you for your attention! 2 / 2 bis central bankers'speeches