speeches international authorities have assessed the bank of albania ’ s work progress as positive. regarding institutional issues, the european commission, international monetary fund and world bank have given the bank a maximum score. * * * dear members, ladies and gentlemen, completing my speech, allow me to highlight some problems which have conditioned and will condition the functioning of albanian economy and financial markets. we deem that these problems require prior attention and cautious solution. first, the integration of the albanian economy with the european financial systems and markets implies that shocks and swings to our financial and trading partners are soon transmitted to the albanian economy. the medium and long - term outlook of the albanian economy is related to that of our trading partners. global market ups and downs increase or decrease the economic activity in the country. overall, the integration process remains beneficial to the albanian economy, but it poses challenges as well. therefore, i would like to emphasise that the albanian economy and financial system should pay more attention to global market developments ; our structural reforms should aim at increasing resistance to their swings, while our economic policies should be cautiously oriented toward long - term global trends. secondly, the country ’ s financial stability should be seen as a duty of all and not as an issue of one or some institutions. the financial stability is a public good that serves the long - term development of a country. recent global developments have proven that the financial system is a highly integrated mosaic ; its stability has many dimensions and it is determined by the interplay of many segments and stakeholders. therefore, i would like to reiterate my appeal for finding a political consensus that would enable the establishment of a fiscal rule, which serves the maintaining of long - term sustainability of public finances and investors ’ confidence in the albanian economy. third, the reform of social and health insurance systems is another important aspect that remains problematic for the long - term stability of the country. deficits resulting from them are upward and may substantially affect fiscal parameters in the future. this reform should open the way to development of relatively backward segments of the financial system, those of private pension and insurance funds. this would really contribute to expanding and deepening the financial market in albania. fourth, sticking to financial stability, i would like to bring to your attention the changes in the code of civil procedure relating to easing of collateral execution. further to the package launched recently by the bank of albania and the letter i sent a few days ago to the major parties in the assembly, i would appeal once more for their

of 25bps at the end of last year, most of the markets predicted another 50bps increases this year, once probably in june and another at the end of year. we already included this scenario in our policy making. although it is still challenging, but compared to 2015 i think the uncertainty and volatility will be lower this year. we closely monitor the negative policy rates of euro and japan. frankly, i am in doubt that these will be effective to address their deflation problems compared to their quantitative easing. all in all, these ffr outlook and negative rates in europe and japan as the ‘ push factors ’, with the positive outlook in our part as the ‘ pull factor ’, will be positive for fdi and portfolio inflows to indonesia and rupiah exchange rate. on china. there are three channels that we need to anticipate from china factors : trade, renmimbi depreciation, and investment. on trade, china slowdown and commodity price declines continue to put pressures on our export. our simulation shows that every 1 % of economic slowdown in china corresponds to 0. 3 % slowdown in indonesian economic growth. on renmimbi, i do not believe there will be big devaluation as we saw last year. i think pboc will continue to intervene and reckon that renminbi depreciation will be gradual this year. the challenge in china is of course the policy adjustments that being implemented right now, i. e. : further capital account liberalization, financial market development, as well as greater exchange rate flexibility. this leads to the third china factor that we must not forget. china is aggressively pursuing its outward investment to support economic growth, embedded into its ambitious silk road strategy. so we have to prepare and open our arms for greater investments from china, as we have done to japan and south korea. these are what we see from the global economic and financial condition. last year up until september was the most difficult time, but after december we see some improvements. the uncertainty is still there, but overall we are more confident now. we have incorporated these uncertainties in our policy making. indonesia has shown its resilience in the past, and it poises to progress well now and to the future. bis central bankers ’ speeches indonesia economic outlook and risks with stimulus from both fiscal and monetary fronts, as well as accelerated structural reforms in many key areas, we will be seeing significant improvements on indonesia economy