gent sejko : launch of the ebrd transition report 2017 - 18 opening remarks by mr gent sejko, governor of the bank of albania, at the launching of the ebrd transition report 2017 - 18, tirana, 11 april 2018. * * * dear mr colangeli, dear mr sanfey, dear participants, it is a special pleasure for us to host again the presentation of the transition report 2017 – 18 by the european bank for reconstruction and development. the transition report 2017 – 18 addresses some very important issues for transition economies, such as convergence of firm dynamics and productivity, the importance of road infrastructure to economic growth, and the new opportunities from the green economy. it is a pleasure to note that the report presents a positive assessment of the developments in the region. after some years of anaemic growth, the economic activity in the region shows recovery and the prospects remain positive, notwithstanding the geopolitical concerns and the internal and external challenges we face. some regional countries grew faster than other countries around the world, of similar development level and market size. the capital inflows have been relatively considerable, driving to the narrowing of the interest rates spread in the region compared with those in large economies. more importantly, it seems that inflation is gradually returning to target levels and the accelerated economic growth in the western balkans is supported by bank lending and some major infrastructure projects. nevertheless, the report notes that productivity growth slowed down ; hence, the firm dynamics is identified as one of the main issues that should concern our region. the main reasons of these developments seem to derive from some factors : first, the low capacity of markets and firms to regenerate, decelerates the replacement of non - productive firms with new innovative ones, and hinders the efficient allocation of resources. second, small firms do not succeed in increasing their output or the number of employees. studies show that their productivity is rather lower compared with larger firms. smaller firms make up the majority of producing entities – around 80 % in ebrd region, and 95 % in albania. for this reason, more should be done for the integration of smaller firms into global production networks, finding human capital, access in the financial system or capital markets. the bank of albania deems that the development of the financial system is indispensable for the economic development of the country. in this regard, through our policies, we are trying to encourage a more efficient allocation of bank lending, in order for

be conducted after the 3 years target : mid - term review shall be conducted to assess impact of the interventions of the financial inclusion initiatives included in the framework and inform the national council on the appropriate directives to issue to the key stakeholders for implementation. your excellency, your majesty ; ladies and gentlemen : development of the framework has been a very fruitful process ; we have witnessed, from the members of the council and other national technical committees, great enthusiasm, commitment, energy and desire to increase the level of financial inclusion in tanzania. we therefore expect that the official launch of the framework shall build more impetus to fulfill our objective of improving the level of financial inclusion in tanzania. with this remarks, i now have the honor to welcome honorable, ms. saada mkuya, acting minister for finance to deliver her remarks and welcome his excellency, dr. mohamed gharib bilal, the vice president of the united republic of tanzania, to deliver his opening speech and thereafter welcome the guest of honor her majesty queen maxima of the netherlands to deliver the keynote address. honorable minister ; ms. saada mkuya, welcome. bis central bankers ’ speeches