. if this situation remains as such in a predictable time horizon, the monetary policy may remain accommodative over the same period. the recovery of the domestic demand and economic growth is further related to expectations, which are also affected and contaminated by our trade partners ’ condition. the fiscal policy has aimed at fiscal consolidation and has continued making efforts to prudentially provide necessary fiscal stimuli. currently, if the privatization process is successfully completed, then the fiscal opportunities for promoting economic growth and for revering any negative expectations are significant. the way of using privatization receipts should not only support the short - term economic growth objectives, but should also affect the economic operators ’ expectations for stable economic growth in the future. the latter can be achieved by using additional revenues to reduce debt levels and support reforms for structural changes in the economy. dear participants, currently, we are of the opinion that the concept of long - term development strategies of a deeply national character is an important issue for the stable long - term growth in our region. lacking a regional perspective does not favour the individual success of small economies in the global economy. the process of connectivity and integration of transport infrastructure should continue with the integration of development strategies, capital markets, the labour and primary commodities, and energy infrastructure. our economies are vulnerable and contaminable bis central bankers ’ speeches from global developments because they are small economies in an economic region fragmented and dependent on foreign inflows in the form of investments, exports and remittances. increase in the market share, ease in production factors mobility ( capital, labour, and raw materials ), integration of financial and payment systems, integration and coordination of scientific and educational curricula and addressing of challenges from a regional perspective would make the region an attractive and integrating economic place. this integration would identify the comparative regional advantages, enhancing at the same time the competitiveness of each of our economies. consequently, it would convert the tendency of the region to be negatively contaminated from global developments into an opportunity, a positive impact, in order to achieve high and stable economy growth in the long run. thank you! bis central bankers ’ speeches

inflationary pressures in the medium run. lending to the private sector recorded an annual growth of 9. 0 % in march. its performance, particularly in the recent months, was determined by the low private sector demand for credit and the cautious bank lending behaviour. financial markets were liquid and stable. interbank market rates dropped significantly in april and the trading volume in this market increased. the pass - through of easing monetary policy signals persisted in the lek deposit market as well, as reflected by the lower interest rates. government security yields in the primary market remained at similar levels to the previous month. their increase in the first quarter of 2012 reflects the developments in supply and demand - side structural factors, hence signalling no added inflation premiums. interest rates on lek - denominated loans did not fully respond to the easing monetary policy signals due to the higher credit risk premiums in particular branches of the economy. new information supports our previous projection that the gdp growth will remain below its potential in the quarters ahead, owing to the moderate contribution of foreign demand, lack of fiscal stimulus and sluggish domestic demand. the two main components of the latter, consumption and private investment, remain slow. the incomplete utilisation of capacities, coupled with the slow rise in wages and unit labour costs, are expected to exert contained inflationary pressures in the period ahead. economic agents ’ inflation expectations are anchored close to the target. they, however, may be subject to the response to global developments in the short run. the gradually subsiding supply - side shocks in the period ahead, the termination of base effects ’ impact and the extended effect of the bank of albania ’ s stimulating policy are expected to be followed by an rising inflation trend, thereby approaching the bank of albania ’ s target in the medium run. the bank of albania has continuously eased the monetary policy in the recent months, aiming at meeting the inflation target in the medium run, and keeping the inflation expectations and risk premiums in the economy under control. this policy has aimed at responding to a situation where the main obstacle to the recovery of private sector demand and foreign direct investment relates to the uncertainty for the future and approach to risk, in the short and medium run. we consider that the provision of a cautious monetary stimulus, bis central bankers ’ speeches conditioned by the control of risk premiums and safeguard of financial stability, is major contribution the bank of albania can make to the stable and long - term economic growth in albania. * * * based on