low inflation environment that we target is a prerequisite for sustainable economic growth as well as employment growth. we will remain determined and resolute to reach this target with our corporate capacity, strong analytical capability and sense of responsibility. the central bank will continue to use all available instruments independently and effectively in pursuit of its primary objective. in the period ahead, the one - week repo rate will remain our main policy tool, and we will continue to implement the monetary policy within a simplified operational framework. the inflation - focused monetary policy will be our strongest weapon that will serve as a shield against global fluctuations and financial market volatilities. our determination to fight with inflation will secure the strength and prestige of the turkish lira. in the current period, high levels of inflation and inflation expectations require a tight monetary policy stance. the monetary stance will continue to be determined in view of inflation developments and inflation expectations, and at a degree of tightness that will rapidly restore the disinflation process and ensure its sustainability until we achieve our medium - term targets. until there are strong indicators that point to a permanent fall in inflation, we will continue to set the policy rate at a level above inflation, in a manner to maintain the strong disinflationary effect. to sum up, we will make our decisions with a data - centered perspective, taking into account all macroeconomic data flow, inflation in particular. in the new period, we will make the best use of our corporate capacity to ensure a permanent fall in inflation. it should be noted that the stability to be achieved in the general level of prices will positively affect macroeconomic and financial stability through the fall in country risk premiums, the start of reverse currency substitution, the uptick in foreign exchange reserves, and a permanent decline in financing costs. accordingly, it will set the ground for a sound and sustainable increase in investments, production, and employment. dear shareholders, in the upcoming period, implementing the reforms set out in the economic reform package announced by our government will be crucial to reinforcing confidence and stability and thus, to achieving both a permanent fall in inflation and sustainable growth. on the other hand, like before, we will continue to use our communication channels actively to enhance the effectiveness of our policies and get the views and suggestions of our stakeholders. in line with the transparency and predictability principles, we will share our decisions with the public. as i end my speech, i would like to thank you all for your participation.

fatos ibrahimi : banking system reforms, accomplishments and challenges in albania speech by mr fatos ibrahimi, deputy governor of the bank of albania, at the ninth cei summit economic forum “ fostering reforms and innovations for sustainable growth ”, a ministry of economy, trade and energy, central european initiative, tirana, 23 november 2006. * * * distinguished participants, allow me to express my pleasure for participating in this forum and for the opportunity to present some of the main developments that have taken place in one of the most important fields of the albanian economy, the banking system. my presentation will focus on two issues : first, the main steps followed by the reform in the banking area, presenting the problems related to commercial banks, omitting monetary aspects. secondly, the current situation of the banking system and some of the main problems it is faced with, which need solution over the short - term and medium - term period. the banking system reform was part of the structural reforms undertaken by the albanian authorities after 1992, which aimed at macroeconomic stability and albanian economy transformation into a market economy, by privatizing the economy and creating financial and social protection institutions. the banking system transformation in albania followed the same path as in other former socialist countries. the first important phase started with the passing from the one - tier banking system into a two - tier system, in which the former albanian state bank was divided into two banks, with a qualitatively distinguished activity from each - other. the bank of albania was given the conventional functions of central banks, such as : monetary policy, currency issuing, foreign exchange market ; while the national commercial bank, together with other banks, were given the conventional banking functions, such as accepting deposits, extending loans and other banking services. the laws “ on the bank of albania ” and “ on the albanian banking system ” adopted in 1992 constituted the grounds needed for this transformation. it is worth mentioning that one of the fundamental elements of the law “ on the bank of albania ” of 1992 was the granting of a relatively high degree of independence to the central bank, as a legal, institutional, financial and personal independence. this independence has been increasing constantly throughout these years, not only as a legal and institutional independence, by amendments made to the law in 1996 - 1997 and after the approval of the constitution, but also as an independence in the real aspect. under the law of 1992, the dependence of the central bank passed from the government to the parliament, being given simultaneously