no other sea outlet, but thessaloniki also is closer to sofia than the bulgarian ports in the black sea, and the same applies for large regions in south - east romania, south serbia etc. companies established in these regions will find it more convenient to use thessaloniki as a trading port than other sea outlets. especially, if one takes into account the queuing time needed to cross the bosphorus, the economic advantage of the greek ports is more than evident. this will be even more so when the eu co - financed trans - european transport networks, opening up the aegean ports to our northern neighbours and beyond, will reach a maturity phase towards the end of this decade. can thessaloniki become the rotterdam of the balkans? keeping all proportions i would reply yes, and its expansion in recent years and especially after 2007 when the road linking turkey to the west ( the egnatia highway ) will have been finished is a guarantee that thessaloniki along with northern greece will be restored to its past trading and economic glory, to say nothing about the fact that it is a very pleasant, in many respects more than athens, city to live in. greece is in a special position in that its exports of services far exceed its exports of goods. in fact, our non - oil good exports are now somewhat less than tourism receipts and even less than those from shipping, while our total receipts from services cover more than four - fifths of our total non - energy good imports. many foreign observers indicate, as a source of concern, greece ’ s trade imbalance but they forget that - in the world we live in - services are growing faster. we should build on our success in these areas. it is well known that greece is a major world power in shipping and by far the most important shipping nation in the european union and, on the basis of new orders, it may increase even more its world market share over the medium term. for both economic and geopolitical reasons, europe needs a strong merchant fleet, and here lies greece ’ s important contribution to the union. greece, with a shipping tradition of more than three thousand years, should maintain its comparative strength in this area both for its own benefits and the european union ’ s as a whole. shipping is a sector subject to practically unhindered international competition ; it is, therefore, necessary not to impose on it measures and regulations that could impair its competitiveness, apart from those required for environmental reasons. we should also look at ways to enhance the role

top of the agenda of central banks. we have fully endorsed this new focus. after an upgrading of our banking supervisory framework which allowed us to implement basel ii as from march 2008, the bank is now envisaging to implement basel iii. a consultative paper outlining the proposals of the bank will be issued for consultation by the end of october 2012. our banks have remained strong during the global financial crisis. the higher capital requirements of the basel iii framework will further enhance their ability to function under conditions of stress and help protect depositors. • the deposit insurance scheme is currently in its final stages after a lengthy process which involved intensive consultation with the banking industry and study visits by our officers to other jurisdictions. this additional safety - net will reinforce the stability of our financial system. bis central bankers ’ speeches • another issue that requires our attention is that of domestic systemically important banks, the so - called d - sibs. i had drawn attention on several occasions to the fact that at least two of our banks have developed into big complex institutions, with the potential of posing a threat to the financial system in case of failure. we are currently working on a framework for the monitoring of such institutions which will be required to simplify their structures and maintain additional capital, and possibly write living wills. i am very pleased to note that already two banks, as well as one financial conglomerate, have taken the cue and are restructuring their operations so that they end up with leaner structures. • i am pleased to announce that the net profits of the bank rose from rs258. 4 million for the financial year ended 30 june 2011 to rs395. 3 million for the current financial year. the sustained improvement in the performance of the bank was attributable mainly to a combination of operational efficiency and a prudent diversification strategy with respect to reserve management. in 2011, there was a noteworthy change in the bank of mauritius act 2004 with significant impact on the accounts of the bank. this provision allows the bank to credit to the special reserve fund all unrealized gains, arising from the valuation of investments held by the bank, instead of treating them as distributable income, which forced the bank to liquidate portfolio assets, which it would have been more prudent to keep, to distribute as profits. words of appreciation i am deeply indebted to all those who have supported me during my two tenures of office. i thank dr the honourable navinchandra ramgoola