for cash. i deem that the bank of albania has taken adequate and timely measures. in their response, the financial markets continue to function normally, although the increased demand of the public sector for financing and the heightened uncertainty about the duration and severity of the negative impact of covid - 19 pandemic on the economy. these measures enable the implementation and complete the fiscal package of the albanian government. without a common and coordinated reaction of macroeconomic policies, the economic outlook of the country would have been more challenging and the economic recovery more difficult. * * * honourable members of the committee, we are experiencing unprecedented and hard times. nevertheless, our guidance 6 / 7 bis central bankers'speeches should remain forward - looking, towards the drafting and implementation of the necessary public policies for the recovery of the country. all the actors should play their role. first, the fiscal policy should continue to have a primary role in facing the situation. the ensuring of the necessary funds to health system, the financial aid for the affected employees, and the measures to improve liquidity to firms, imply the increase of public debt, but they are and remain exceptional. in the current circumstances, the increase of debt is an affordable cost to guarantee the maintaining of the economic and financial equilibriums. second, the bank of albania will continue to implement an accommodative monetary policy stance, coupled with the supervision and prudential regulation of the banking sector. in one hand, the monetary stimulus – implemented timely and based on the instruments provided by the legal framework of the bank of albania and the needs of the albanian market – will establish the premises to boost the demand and reduce the costs of financing. on the other hand, the supervision and prudential regulation of the banking system will be oriented toward the maintaining of its soundness indicators and of the albanian households ’ savings. third, the private sector should be willingness to review the business model, to adopt innovative and efficient production forms. also, it should take care to optimally manage liquidity and effectively allocate the cost of shock on the production chain, to enable their rapid activation once the covid - 19 pandemic is over. honourable members of parliament, the forecast about the forthcoming developments is relatively difficult, although the logic of the events is largely dictated by the considerations of health nature. in our base - line scenario, we expect the second quarter to mark the peak of shock on the economy, then the situation returns to improve : at the beginning gradually in

monetary policy. the joint examination of the albanian economy found that the fiscal and external sectors are the two main ones that would require our attention and our work in the future. the bank of albania has long held that public finances ’ long - term stability is a precondition for sustainable economic growth. the daily world press illustrates channels through which indicators such as budget deficit and public debt affect financial markets and in turn the real economy. convinced that the albanian economy would benefit in the medium and long run from lower public debt, we have encouraged and supported all measures taken in this regard. we deem that this philosophy should lay at the foundation of the expected 2011 midyear budget review, as well as other medium and long - term public finances projects. the external sector is another structural weakness of the albanian economy. partially also in response to this concern, the bank of albania has underlined constantly the need for deepened structural reforms to support a new economic growth and development model for bis central bankers ’ speeches albania. this model should inevitably materialise through increased efficiency and competitiveness of our products and services in domestic and international markets. on the other hand, it requires a more rational attitude of the private sector towards the current economic context as well as a more careful financial - risks management. what is more, the albanian economy needs to become more attractive to foreign investors by continuously improving the business climate, the legal framework and its implementation, as well as by providing educated and cost - attractive labour force. thirdly, seen in the above - mentioned setting, our policies should remain prudent to guarantee the country ’ s macroeconomic equilibriums. as the crisis showed, prevention is better than cure. in this regard, political and structural measures that contribute to stability have a positive impact in the long term horizon. * * * during the consultations, i found that we share with the imf and the ministry of finance the same views on the need to maintain and further strengthen macroeconomic stability. moreover, there is a modern consensus on division of duties between the two central institutions of macroeconomic administration ( central bank and ministry of finance ) as well as a concrete commitment to continue this co - ordination in the future. in conclusion, i would like to reiterate that the bank of albania remains fully committed to observe the inflation target of 3 %, and continue to orientate its monetary policy exclusively to this function. bis central bankers ’ speeches