##increasing importance in the assets structure of the banking system, constituting a considerable source of the demand for monetary assets. the credit / deposit ratio increases on a continuous basis, an indication that positively introduces the function of the intermediation role of the banking system in supporting the economic development. the balance credit rise marked during the eleven - month period of the year the value of lek 15. 3 billion, reflecting a rise of 30 percent relative to the yearend of 2003. the easing monetary policy of the bank of albania has helped smooth the appreciation pressure of the lek exchange rate. the differences between interest rates in foreign currency and those in domestic currency incurred a decline during 2004. however, the rising foreign currency inflows on one hand, and the reduction of imports volume on the other one, have created a temporary difference between the foreign currency supply and demand during the summer period. this misbalance has exerted a significant pressure on the appreciation of the lek exchange rate, fostering the foreign market volatility. the exchange rate volatility through this temporary rise of foreign currency supply has imposed the necessity of the bank of albania intermediation to the foreign market during the summer period, towards purchasing the foreign currency. though trade deficit increased, the current deficit in the third quarter has been lower than in the previous quarters, thanks to increased and positive balances of income, services, and particularly current transfers. the current transfers balance is estimated at usd 295 million, being higher than the 1 / 2 one of the first two quarters, and nearly 44 percent higher than the one of the third quarter of the previous year. overall, the balance of payments performance during 2004 was positive. the gross foreign reserve level, at the end of this period, was estimated at usd 1 billion and 244 million, adequate to cover 5. 1 months of imports of goods and services. based on the aforementioned developments, we may conclude that year 2004 contributed generally in further consolidating the country's macroeconomic equilibrium. although full data for the yearend of 2004 are not yet available, there is a crystallization of the idea that the primary targets projected in the medium - term plan on the country's development have been met satisfactorily. according to the latest estimations, the albanian economy grew by 6 percent under the conditions of a low inflation rate, far closer to the bottom level of the targeted band. the structural reforms, through their problematic concerns, have progressed during

fatos ibrahimi : general introduction on regulatory impact assessment and first practical application opening speech by mr fatos ibrahimi, deputy governor of the bank of albania, at the workshop “ general introduction on regulatory impact assessment and first practical application ”, organized in cooperation with the convergence program of the world bank, tirana, 31 january 2008. * * * ladies and gentlemen, it is indeed a great pleasure to open the workshop on the “ general introduction on regulatory impact assessment ( ria ) and first practical application ” as part of the ria knowledge transfer program to be delivered by the convergence program of the world bank. this workshop marks the beginning of the activities of the special projects initiative ( spi ) albania that was launched on january 19th in bari in the presence of governor fullani, the president of the puglia region nichi vendola, the high - ranking representatives from the central bank of montenegro and the banking associations of the respective countries as well as the representatives from the convergence program of the world bank, which promotes and manages the spi albania project. the spi albania will build upon the positive outcomes of the similar projects carried out in bulgaria and romania. its nature of a public - private partnership constitutes the most important characteristic of this project which will aim at the acceleration of the financial sector modernization in albania by fostering a close dialogue and cooperation between the regulatory authorities and market participants in our country. in this context, the bank of albania remains fully committed to contribute to the successful implementation of this project by continuing to engage in a fruitful and continuous cooperation with the representatives of the banking system in accordance with the nature of this project. the development of the evidence - based policy analysis skills in compliance with the eu ’ s “ better regulation ” approach will constitute the cornerstone of the spi albania activities. these capacity - building activities will aim at acquainting the staff of the albanian regulatory and supervisory institutions with the necessary expertise that will enable them to draft the impact assessments of the regulatory acts proposed by the respective authorities by employing the main tools and methodologies necessary for the evaluation of costs and benefits as well as for the preparation of the market failure analysis. it should be emphasized that the albanian institutions are not quite familiar with the techniques of regulatory impact assessment and therefore trainings such as this one are more than welcome. following the adoption of the new banking law in december 2006 and its entry into force in june 2007, which represented a further alignment of the albanian banking legislation with the eu acquis