sector demand for monetary assets increased. private sector credit growth rates were upward and settled at 14. 0 % in october. credit demand was higher both by businesses and by households ; however, this growth is slow. overall, lending terms offered by the banking system and parameters of capitalisation, liquidity and health are appropriate for funding higher demand for private consumption or investments in the future. latest developments in financial markets continue to be characterised by controlled risk, liquidity and inflation premiums. successive key interest cuts appear to have been transmitted forthwith in the money market. government securities yields in the primary market dropped further, reflecting the key interest rate cut in the economy and the low public sector demand for funding. the key interest rate cut is expected to be transmitted in the future to interest rates on deposits and loans, in accordance with the time lag of the monetary policy transmission mechanism. lastly, a positive development in financial markets at home is the reconfirmation of the actual government bond rating and the country ’ s stable outlook by moody ’ s and standard & poor rating agencies. projections for the economic outlook remain subject to high uncertainties, dictated mainly by developments in the global economy. our analysis and estimates suggest continuation of moderate economic growth rates for the reminder of the year and the next year. economic slowdown in our trade partner countries may be reflected in weaker foreign demand and further deceleration of albanian exports. in addition, space for implementing fiscal stimuli narrowed in response to the growing need for maintaining fiscal stability and controlling public deficit and debt levels. consequently, public sector contribution to aggregate demand growth is expected to be downward in 2012. under these circumstances, the extent and speed of recovery of private sector demand will be crucial for the country ’ s economic growth. as we have stated in earlier communications, bis central bankers ’ speeches the actual monetary conditions are appropriate to encourage private consumption and investments. * * * taking into consideration the information set out above, in the supervisory council assessment, inflationary pressures remain controlled over the monetary policy relevant horizon. the presence of the negative output gap in the period ahead will be accompanied by low inflationary pressures originating from internal demand. in addition, inflationary pressures from global economy developments are projected to be more moderate, whereas inflation expectations are anchored. these assessments are materialised in annual inflation projections ranging within the target band of the bank of albania for the medium run. at the conclusion of discussions, the supervisory council decided to leave the key interest rate unchanged at 4. 75 %

“ hold to maturity ”. in other words, this implies the necessity for more flexibility, more diversification and for the existence of efficient risk management structures. a constant concern, which i want to pay particular attention and get your highest interest on it, is the professional development of human skills. i am not making any prejudice about the human resources that are currently working at the banking system, but i would like to point out that the mobilization of capable human resources, devoted to and shaped professionally is vital for the accomplishment of success. to be more competitive and bring new developments, we have to constantly upgrade the skills of each employee at all levels. it is true that the majority of the banks of our banking system represent international well experienced banking groups. however, i would like to emphasize that there is still room for more expertise and qualified human resources, so that the best practices of the international markets are infiltrated in our banking system. in addition, within the framework of this association, i would advocate that the dealers association must very soon come up with a code of conduct, agreed by all its members. while this code is a non - statutory body, with no executive powers, it complements the selfregulation of the market by bringing together the best minds of the market participants and professionals to create a reliable trading practice. concluding, i would say that developing the interbank money and security markets is among the top priorities of the bank of albania. as such, we will make all our efforts to create the necessary conditions to minimize the trading risks, as well as create and support initiatives to active trading in the these markets. i hope these efforts will receive your understanding and more important your cooperation. it will be very satisfactory indeed, that in my next appearance in this platform i will be able to bring concrete results of our common efforts to develop interbank money market and secondary market. concluding my speech, i would like to emphasize once more that no long - term and stable development may exist, without having effective financial markets. the financial market with all its segments, should precede the signals and novelties brought about by rapid dynamics of development of the private sector and the economy in general. thank you all for your attention!