previous year. these positive developments on the banking system were accompanied by a sound macroeconomic environment. for several years the economy is growing at 6 percent while inflation was kept under control within the two - to - four percent targeted range of the bank of albania. the fiscal consolidation has been on track while current trade deficit has been financed mainly by remittances and foreign direct investment inflows. the bank of albania has played a crucial role in providing this macroeconomic environment. since early 2003, we cut several times the core interest rate bringing it at its minimum historical level, 5 percent. in taking any monetary policy decisions we had considered the further invigoration of economic activity, keeping always an eye on inflationary developments and financial stability as well. as i would like to often mention in the imf premises, albania is considered as a successful story. the board of directors have recently declared that albania is enough mature to sign a new three - year agreement by the end of this year. the new arrangement will be a more flexible one leading albania to a better access in the international financial market. of course, what i mentioned above was just a brief resume regarding the current situation of the banking system and the overall economic performance. there is no doubt that albania ’ s attractiveness has further enhanced, and partially this reflects also the increase of confidence in the albanian banking system. using the opportunity of this very prestigious forum, i would like to share my voice with that of the albanian representatives present in this panel, expressing that my country is more open, more consolidated, ready to absorb more ambitious projects and, of course, global projects. i wish you successful and fruitful proceedings of this meeting. thank you.

ardian fullani : a short overview on the latest albanian banking system achievements speech by mr ardian fullani, governor of the bank of albania, at the ebrd 2005 annual meeting and business forum, belgrade, 22 may 2005. * * * ladies and gentlemen, it is a great pleasure to participate in this prestigious event of the ebrd annual meeting and business forum. for this purpose, i would like to thank the organisers of this meeting who provided us such an opportunity to present our achievements and ambitions for the future. allow me first to tackle an important issue, which within the context of this meeting, i believe, is of paramount importance. i mean by that the regional co - operation, an initiative that has been completely supported by the european central bank. we have already taken the first steps in this regard through establishing bilateral relationships in banking supervision with national bank of macedonia, central bank of montenegro and banking and payment authority of kosovo. meanwhile, we are in the process of negotiating with national bank of bosnia and herzegovina, national bank of serbia etc... i estimate that regional co - operation is an important forerunner of the integration process of the region with the rest of europe ; therefore i will not stop working to encourage a regional co - operation of high standards among the financial systems of balkan countries. i hope that you share the same opinion with me, because only in this way, our region will be more credible and efficient to have its european dream. on the other hand, a developed and financially integrated region will be more attractive for foreign strategic investors, opening up the path toward regional development projects, particularly infrastructure ones where region ’ s banks might be directed in financing and investment. further on i would like to give to you a short overview on the latest albanian banking system achievements. after many years of difficult transition, in this late spring of 2005 the banking system is growing on a stable basis. dear participants, i would like to ensure you that recently there are many qualitative developments of the albanian banking system. i use the opportunity of this event to express that positive assessments on the banking system have been given also in the report prepared by the world bank and international monetary fund after the completion of their assessment made on the albanian financial system ( fsap - financial system assessment program ). of course, this is good news. conclusions of fsap, of this important international passport, are an indication of our earliest conclusions that the albanian financial system is characterized by a supervised and