ardian fullani : recent economic and financial developments in albania speech by mr ardian fullani, governor of the bank of albania, at the joint press conference with the international monetary fund ( imf ) mission and the ministry of finance, tirana, 14 july 2010. * * * honourable participants and representatives of print and visual media, the visit of the international monetary fund mission is characterised by fruitful and intensive discussions. they were focused on the recent developments at home, their perspective in the near and far future and the role of structural and macroeconomic policies to encouraging and ensuring the sustainable development of the country. at the end of these discussions, we conclude that we share a common opinion as regards to the role and importance of prudent policies, which should have at their hart the maintenance of the basic economic balances, as an essential prerequisite for the stable and long - term growth. likely positive is the fact that the principal decision - taking institutions remain committed to perform concrete steps in due time to ensure this development. the bank of albania has already adopted this position and transparency, as a guidance of its decision - taking process in both the monetary policy and banking supervision fields. the respective explanation has composed the essence of our communication with the other players of the economy and with the public at large. allow me to deal in more details the issues discussed during these days, by summarising the opinion of the bank of albania in this regard. the economic developments of the last months carry encouraging signals, but also they show some weakness of the albanian economy and the compromises that policy - makers should realise and accept to accomplish their targets. the albanian economy, during the first half of 2010, has performed in line with our projections, being characterised by a positive, but slow growth of the economic activity. this growth is considerably grounded on the quick increase in exports, by denoting the improvement of the world economy, the more competitive position of the exchange rate, also the efforts of businesses and industries which carry out their activity in this sector to find new markets and the use of their competitive advantages. on the other hand, the domestic demand slowed down, mainly reflecting the still high uncertainty and the difficulties in the financing of the economic activity. as regards to the basic balances of the economy, this period is followed by controlled downward inflationary pressures, as well as correcting trends in the external position of the country. the economy financial health is improved, the confidence on banking system is recovered and the risk

to play in the everyday economic and financial life of the country. now that we know the already - announced objectives of the government of albania for 2018, it is understandable that 2018 is a rather challenging year to further boost economic recovery and strengthen the financial stability of albania. from this perspective, i would like to affirm that, like in 2017, in 2018 the bank of albania will continue to focus on : guaranteeing a stable economic environment, keeping inflation rates in check, and having liquid markets with low volatility. the monetary policy will aim at an adequate supply, in terms of both quantity and price. the final monetary policy objective will be unchangeable, while the accommodative stance implemented in the past years will be present during 2018. boosting credit recovery in albania. we believe that the further boosting of the economy provides a friendly environment for lending to the economy. in addition, we will continue to insist in the implementation of the joint programme for the reduction of non - performing loans. in this light, we expect the banking system to be proactive in lending to the economy. strengthening banking supervision and guaranteeing financial system stability, one of the fundamental objectives of the bank of albania activity. as in the past, we will be constantly in search of the best international rules and practices that aim at having a financially sound banking sector, capable of supporting economic development in albania. de - euroization of the albanian economy. the measures that we have jointly designed will enter into force in the first half of 2018. therefore, we should also try together to maximise the expected results, translating them in practice in greater confidence and higher use of the national currency in the economy. 2 / 3 bis central bankers'speeches continuous communication with the sector, regarding bank of albania ’ s decision making. the dialogue with the banking industry is considered as a crucial factor in helping to identify the problems, guaranteeing the implementation of the legal framework, and overcoming the challenges. increasing financial inclusion and deepening financial education. alongside with the regulatory and supervisory role, financial education is and will continue to be another important aspect of our everyday work. we consider it as one of the main pillars of the economic and social development of albania. concluding, i would like to reassure you that, the bank of albania will continue to be a serious and devoted partner. i wish you a successful and prosperous year for you and your families. thank you! 3 / 3 bis central bankers'speeches