##l crisis. indeed, many banks were technically insolvent. a banking system in such a status would be difficult to support a sound economic development. such a reality buttressed china ’ s resolve to carry out reforms. in february 2002, at the second national financial work conference, plans were made to strengthen financial supervision ( later on in 2003 the china banking regulatory commission ( cbrc ) was established ). it was also decided to kick off a new round of reforms on the commercial banking sector, clean up bank balance sheets, and proceed with financial restructuring – measures designed to make major commercial banks to be financially healthy. over the next five years, china carried out a series of reforms on the financial institutions, including not only the commercial banks, but also the rural credit unions and other financial institutions, such as security firms and insurance companies. the decision to carry out reforms was the result of lessons learned, and it also laid a foundation for future development. just before the enron and worldcom cases were exposed in the united states, the chinese media had unveiled a fund scandal in its securities trading. in this case, some institutions were found of manipulating stock prices. the year 2001 also saw the yin guang xia case, which was similar to the enron scandal in that the listed company disclosed false information and engaged in unlawful trading in its stock. in 2003, a larger scandal of listed company broke out with the collapse of the de long conglomerate. following these incidents, china ’ s financial regulations and corporate governance standards were improved and toughened to counteract the misconducts by using complex corporate structures, which occurred in the de long case. china ’ s financial system is thus gradually improving its knowledge to deal with instability or turbulences of varying degrees. while it ’ s difficult to avoid mistakes completely, the key is to learn the right lessons, make improvements, and achieve substantive progress. a chinese saying goes like this “ if you frequently suffer minor illnesses, you may be finally exempted from a major disease ”. china must avoid at all costs the kind of disease that plagued japan ’ s economy through the 1990s and even into the new century. the mirror image in reviewing international financial instability or turbulences since the 1970s, we may have two observations. first, while many kinds of instability or turbulences afflict financial systems, only minority is created by the financial system itself. the majority reflects problems in the real economy – the so - called “ mirror image ” in financial sector. the real economy and

2013 additional data series on fdi flows and stocks disaggregated by partner countries and activities were submitted. currently we are working on the establishment of new data warehouse system in the central bank that will contribute for improved data management in general, as well as enable the transmission of more demanding and detailed datasets in the future. in july 2012 we started with submission of a more detailed set of the external debt data to the world bank within the quarterly external bis central bankers ’ speeches debt statistics database in accordance with the requirements for sdds countries, thus being among the first countries in the region fulfilling the overall data requirements in this field. in addition, just recently, we have received the first annual report by the imf on data submission under sdds, that we joined in november 2011, with positive annotations of the overall data submission under this system. further improvement of our statistics, bringing it closer to the eu requirements, remains one of the key priorities of the central bank. just to summarize, in view of the global environment, the current macroeconomic performances of the macedonian economy are relatively favorable. anyway, just like in the previous years, the risks are still present and they are related to the expected recovery of the external demand, the sentiment on the global financial markets and the world prices development. continuation with the structural reforms is a key in eliminating structural bottlenecks and paving a way for sustainable growth and faster eu integration process. the nbrm will continue with regular monitoring and analysis of the developments in the economy and remain prepared, if necessary, to undertake appropriate measures to preserve macroeconomic stability. bis central bankers ’ speeches