tukiya kankasa - mabula : modernising zambia ’ s payment system remarks by dr tukiya kankasa - mabula, deputy governor administration of the bank of zambia, at the ecobank launch of financial products, lusaka, 16 december 2009. * * * • members of the ecobank zambia limited board of directors present ; • the managing director of ecobank zambia limited, mrs charity lumpa ; • members of the diplomatic corps ; • ecobank zambia limited customers ; • management and staff of ecobank zambia limited ; • members of the press ; • distinguished invited guests ; • ladies and gentlemen. it is with great joy and gratitude that i stand to address you at this important launch of the “ ecobank rapid transfer ” and the “ non - resident african account ”. i am informed that the two products are designed to transfer money faster and in real time while meeting the needs of customers resident in countries other than those where their accounts are domiciled. i am also pleased that these two products are aimed at promoting the efficient transmission of remittances at an affordable cost. distinguished ladies and gentlemen, allow me to briefly highlight the importance of remittances to our economy. remittances are increasingly growing to be one of the most important sources of finance in zambia. such funds are not simply an expression of fondness by people in the diaspora to assist their families in adverse situations. they also represent an important source of finance that augments capital inflows and investments in the economy. formal remittance inflows into the country for the three quarters to september 2009 were estimated at k221 billion. this emphasizes the growing significance of globalisation and thus the need to intensify efforts to improve and establish, an environment that could enhance the impact of remittances and their effectiveness on the economy. furthermore, remittances when compared to other forms of capital inflows, can have a positive impact not only on the volume but also on the quality of investments. people in the diaspora or their relatives are more familiar with the local economic and social environment and therefore can make a better use of the capital brought into the country. infact, the recent few years has seen a growing number of zambians who were in diaspora, returning and trying to set up their own small or medium size businesses, bringing in, not just funds, but also a lot of know - how. the downside to remittances

is related to actual or expected recessionary situations. its effect on inflation is expected to persist for some time ahead ; however, it will only be a transitory one. regardless of these conclusions, the bank of albania is constantly monitoring the situation. it has all the proper instruments to prevent long - term negative effects that may arise from low inflation, and stands ready to use them, if necessary. our projections suggest that the albanian economy will improve progressively over the next two years. the improvement of the growth rate will contribute to strengthening the economic and financial equilibriums in albania, and will be a determinant factor for the return of inflation to target in the medium term - horizon. the balance of risks surrounding this projection is mostly on the down side. thus, the expansion of economic activity continues to be decelerated by unfavorable economic developments in the euro area, low oil prices in global markets, as well as the still hesitating behavior of many economic and financial agents to undertake long - term business projects. bis central bankers ’ speeches against this backdrop, the bank of albania deems that economic policies and structural reforms should focus on the following : • continuation of the actual combination of economic policies, based on the stimulating monetary policy and the consolidating fiscal policy. the monetary policy will remain accommodative over this horizon and the intensity of the monetary stimulus may be further strengthened if that is judged as necessary. fiscal consolidation mitigates the structural weakness in albania and creates more space for expansion in the private sector. • implementation, without delay, of the plan of measures for tackling and finding a final solution for non - performing loans. this plan seeks to reduce the crediting risk and increase the bank credit supply in albania. its success is an essential precondition for the medium and long - term growth of the albanian economy. • acceleration of structural reforms, especially in relation to completing the infrastructure, improving the business climate, expanding the knowledge, and improving the labor market. in conclusion, i would like to once again thank the imf mission for the useful and constructive talks. thank you for your attention! bis central bankers ’ speeches