shock it experienced due to surge in prices in international markets, and reached 2 % in november 2024. this return to price stability has been accompanied by a reduction in the cost of living for households and an increase in business investments. 1 / 3 bis - central bankers'speeches also, overall inflationary pressures have been reduced, on the back of declined inflation in trading partners, appreciated exchange rate and the normalization of monetary policy stance over the past two years. during 2024, the bank of albania has achieved significant progress in two key initiatives in the areas of payments and banking supervision : joining sepa on november 21, 2024, and advancing open banking. participation in sepa will enable the conduction of cross - border financial transfers with european union countries, making them faster and at lower costs a€ “ an important step towards economic integration and improving services for businesses and consumers. also, the bank of albania, in line with eu regulations, has advanced in implementing open banking, by promoting the use of digital platforms with the aim of enhancing financial inclusion and establishing a more open ecosystem for clients and businesses. open banking will empower citizen with higher and more transparent access to financial services. this development is part of a broader strategy to improve financial infrastructure and digitalize the economy. both initiatives aim to expand financial inclusion, by directly contributing to the reduction of informality, in turn supporting long - term sustainable growth. regarding the future, our forecasts remain positive, mainly based on positive developments in terms of economic activity growth. the financial environment, characterized by ample liquidity, relatively low and stable interest rates, and contained risk premiums, thus transforming bank credit into an important and reliable source of financing for the albanian economy, has played an important role in this regard. to this end, the bank of albania will continue to remain vigilant to accurately reacting and in timely manner to the economic and financial developments. concluding, i would like to shift the focus to an 18 - year tradition that enriches this annual event of the bank of albania. i have the pleasure to present the winners of the governor's award for the best diploma thesis. this activity, invites albanian students from all over the world to present their work in the field of economics and finance. this year 24 participants have participated in this competition with impressive papers. i am delighted to note that the topics addressed in these studies are related to the traditional objectives and policies of central banks, but at the same time, many of them have

emergency intervention function, the promotion of the development of the payment system, the increase of the banknote quality, the administration of the foreign exchange reserve, the improvement of statistics, the support of european integration, and the work to educate the public and improving communication with it. * * * dear ladies and gentlemen, the moment i am making this presentation is unusual. the covid - 19 pandemic and the measures needed to control it have dealt a severe blow to albanian families and businesses over the past three months. the albanian economy is expected to decline during 2020, a decline which will be accompanied by rising unemployment, declining household incomes, as well as deteriorating financial situation of businesses and increased non - performing loans in the banking sector. this blow required a quick and comprehensive response of the public authorities, both in terms of health and economic and social. in addition to fiscal easing measures, the bank of albania undertook a comprehensive package of measures to provide the necessary liquidity to the banking system, to boost lending and to control debt service costs. this package includes : 2 / 3 bis central bankers'speeches reduction to 0. 5 % of the key interest rate and unlimited supply of liquidity to the banking system ; temporary easing of banking regulations, to enable the temporary postponement of the payment of loan installments to customers in difficulty and the consensual restructuring of loans to customers with solid business prospects, helping business finances and increasing their chances of survival ; elimination of operating costs of the electronic payment system, in response to the increasing demand for this type of activity ; increase operational capacity to guarantee the supply of the economy with physical money. in response to these measures, financial markets continue to function normally, despite increased public sector demand for financing and increased uncertainty in the economy. they also enable and complement the fiscal package of the albanian government. in economic terms, coordinated fiscal, monetary and macroprudential measures have partially mitigated the negative effects of the pandemic. however, the challenges ahead remain serious. in our judgment, the albanian economy has the premises to successfully withstand this blow. however, this requires that all public actors and private sector operators make the right decisions, in a timely manner and in the most coordinated manner possible. coping with the shock is within our means, if each of us will do our best and if we continue to guarantee with priority the monetary and financial stability of the country. thank you! 3 / 3 bis central bankers'speeches