europe is ongoing. the extent to which the act will be effective, will also depend on the budget that the administration intends to provide to the sec. but what europeans in any event need to appreciate, is the comprehensiveness of the us approach. the eu in its turn has launched a major effort to improve its members'corporate governance regimes. also, the eu adopted the regulations which require the use of ias by eu listed companies in 2005. this deadline will require eu member states to step up their transition from national to ias. in addition, the eu supports global convergence through the ias process on important accounting issues, such as the treatment of financial instruments, performance reporting, consolidation and share - based payments. furthermore, expanded rules on auditor independence are being drafted. concluding remarks let me conclude. the subject of my address, accounting standards, transparency and supervision, is fairly complicated and has many aspects. first, although confidence in financial reporting has waned, this is due to many factors, of which accounting deficiencies are only one, albeit important element. moreover, these factors are being redressed where possible. second, accounting standards need to be adapted regularly to new developments in business and finance. this is not easy, given the many innovations being introduced all the time. not only do accounting standards need adjusting, the broader corporate governance context needs to be addressed as well. third, greater transparency, through public disclosure and improving market discipline is vital to restoring public confidence. fourth, although prudential supervisors encourage transparency, this is no panacea. transparency cannot do without adequate supervision and oversight. finally, i haven ’ t said much today about auditing. but if ever there was a need for high quality auditors, it is now. thank you.

on real - sector developments over the fourth quarter has confirmed our projections for a weak aggregate demand and below - potential economic growth. however, it has shifted to the downside the balance of risks around the projection. low business and consumer confidence, sluggish labour market and tight lending terms continue to weigh on private demand. disposable income increased and consumer balances were liquid. however, consumers are reluctant to spend and tend to save. on the other hand, lack of final demand and unutilised capacities curbed private investments. the latest data on external trade show an annualised 13. 5 % widening of the trade deficit for december. exports of goods continued to trend up but import growth at double - digit paces bis central bankers ’ speeches led to a higher trade deficit for this period. imports widened as traders intensified their importing activity, one month in advance, awaiting the entry into force of the new fiscal package in january 2014. imports rose 15. 8 %, while exports rose 19. 5 %. fiscal policy was easing in 2013, giving 1. 3 percentage points impulse to economic growth. fiscal stimulus was reflected in higher expenditures and lower fiscal revenues. thus, budget spending increased 4. 7 % in annual terms, while fiscal revenues fell 0. 5 %. however, budget deficit was lower than expected, reaching 4. 8 % of the gross domestic product, from 6. 2 % projected. in 2014, the fiscal policy is expected to be cautious, reducing the budget deficit and fiscal stimulus. in view of this policy, arrears payment will improve the private sector balances and will create better conditions for the recovery of demand. the bank of albania has requested and supported taking of measures to maintain public debt sustainability. in spite of short - term costs, maintaining public debt at subdued and sustainable levels would lead to lower uncertainty, higher space for private sector and higher flexibility of public finances. in a longer term, we deem that an efficient and transparent fiscal rule should be adopted. in response to easing monetary policy and calm liquidity situation, financial markets appear calm in terms of trading and tend to slightly reduce the interest rates. the inter - bank market is characterised by higher volumes and low interest rates. following the seasonal increase at year start, the government security yields tended to fall again in february but did not reach december ’ s levels. as already expected, deposit and loan interest rates fell over the last months. monetary indicators performed in line with the real - economy developments and