links between banks and sovereigns. the recent agreement to recapitalise the spanish banking system marks progress towards a greater financial and fiscal union that will reinforce the monetary union. it is further evidence of europe ’ s resolve to address its problems. if such measures are combined with swift implementation of the financial stability board ’ s ( fsb ) financial reform agenda, which i will outline in a moment, there is a prospect of relaunching a deeper, more robust pan - european financial system. bretton woods ii the second flawed monetary union is at the heart of the current international monetary system : the so - called bretton woods ii arrangement, which is centred on china and the united states. the current international monetary system is a hybrid of, on the one hand, mainly major advanced economies with floating exchange rates and liberalised capital flows and, on the other, a group of countries that actively manage their exchange rates. the result is a system that does not facilitate timely and symmetric adjustment to shocks or structural change. for example, despite its economic miracle, china ’ s real exchange rate did not appreciate in the two decades before the global financial crisis. in the decade before the crisis erupted, china ’ s relentless accumulation of reserves contributed to low real interest rates and, for a time, subdued macroeconomic volatility. market participants increasingly assumed this stable macroeconomic environment would persist – prompting a search for yield, rising leverage and a dramatic underpricing of risks. when combined with inadequate supervision of the financial system and ill - conceived deregulation of housing and financial markets, u. s. private non - financial debt quickly rose to levels last seen during the great depression. with 20 per cent of global output, the united states imported 60 per cent of global capital ( on a net basis ) on the eve of the crisis. this would not have been a problem if this capital had been invested in expanding productive capacity. unfortunately, not enough of it was. now, the debt cycle has decisively turned. creditors demand repayment, and global growth will require global rebalancing. bis central bankers ’ speeches how to pay down debt austerity is a necessary condition for rebalancing, but it is seldom sufficient. there are really only three options to reduce debt : restructuring, inflation and growth. whether we like it or not, debt restructuring may happen. if it is to be done, it is best done quickly, and on a sufficient scale to restore sustainability. policy -

listed on the stock exchange. and for all of the above the bank of albania, over the years, has undertaken a series of measures in the form of legal acts that regulate the well - functioning of the capital market, approximating them to the european directives. also, the necessary infrastructure for trading and electronically recording exchange of securities has been established, thus improving the payment system and creating deposit institutions, including private ones. currently, we have also worked to push forward the secondary government securities market, in order to increase its liquidity and its capability to cushion the impact from the shock of the liquidity risk premia. dear ladies and gentlemen, the stock exchange is an important capital market institution, which coordinates the demand and supply of securities issued openly, freely and continuously. the trade of securities on the stock exchange always represents an exceptionally sensitive indicator of the financial soundness of a certain company as well as the economy, overall. another important aspect is transparency to the general public, in regards to both the price of the quoted stock or debt and the financial information of listed companies, derived in real time. therefore, signing and launching the first public offering, as the one conducted by the non - bank financial institutions, noa, marks a success not solely to the issuer, who will fund its expansion through this medium - term financing, but also to the institutional and individual investors, who will use this investment to diversify their portfolios. the agreement was reached fully and before the assigned deadline, which show that investors trust the entire preparatory process and the transparency of the issuer regarding the financial soundness and integrity of its financial statements. the listing of this product on the stock market will provide an opportunity to investors to exchange ownership early on, depending on personal expectations on issuer's performance and as well as liquidity preferences. whereas for the central depositor, alreg, the listing is expected to facilitate keeping the registry and exchanging securities between various investors. thus, the first public issuance of a private debt instrument opens the door for domestic banks to provide the service of signing securities in the domestic market. in this aspect, i would like to express, once more, my support for all the regulatory actors and, particularly, the afsa for its long - lasting and valuable contribution in drafting and reviewing a series of legal and regulatory acts over the past years, where the bank of albania has also played its part in providing opinions and recommendations, thus showing the close cooperation between our institutions. dear