pound off gold in the autumn of 1931, and the scandinavian currencies and finland had to follow suit. the markka was floated and then depreciated vis - a - vis most foreign currencies. in the spring of 1933, the worst of the depression was over, and the bank of finland pegged the markka to pound sterling. the second world war caused in finland severe inflation which was only brought under control by the early 1950 ’ s. this allowed the finnish markka to enter the bretton woods system in 1952 – finland had become member of the imf already in 1948. in the post - war decades, finnish monetary policy was subordinated to a vigorous, government - led growth policy which sought to promote investment and industrialization, and used interest rate controls, capital controls and government - sponsored lending as its instruments. under this regime, the bank of finland ’ s operational tasks multiplied, including the operation of an extensive system of capital import policies and selective credit guidelines. this financial repression policy lasted until the end of the 1970 ’ s and achieved very high investment rates and growth rates for the economy, but at the price of a relatively high inflation rate and recurrent balance - of - payments problems. the markka was devalued on several occasions. this financial and monetary policy regime changed only in the aftermath of the first oil crisis. in the 1980s the bank of finland, following international trends, gradually lifted the controls on capital movements and also liberalized domestic credit markets. after the deregulation, a very strong credit cycle developed which also produced a sizable current account deficit. this credit cycle ended in 1991 with a severe banking crisis. at the same time, finland lost some of her traditional export markets when the soviet union collapsed. in the course of the ensuing economic crisis, finland ’ s gdp fell by some 14 per cent. the finnish markka was first devalued ( november 1991 ) and the floated ( september 1992 ), depreciating all in all by about 30 per cent against the european currency unit ( ecu ). in february 1993, with the markka now a floating currency, the bank of finland committed to an inflation target of “ less than two per cent ” as the primary objective of its monetary policy. under this regime, the confidence was gradually restored in financial markets, interest rates returned to normal levels, and the exchange rate recovered. a period of strong economic recovery also took place. when finland joined the eu from the

ardian fullani : overview of albania ’ s latest economic and financial developments speech by mr ardian fullani, governor of the bank of albania, on the monetary policy decision - making of the bank of albania ’ s supervisory council, tirana, 29 january 2014. * * * today, on 29 january 2014, the supervisory council of the bank of albania reviewed and approved the monetary policy statement of the bank of albania on the second half of 2013. given albania's latest monetary and economic developments and discussions on their outlook, the supervisory council of the bank of albania decided to keep the key interest rate unchanged, at 3. 0 %. the supervisory council deems that the inflationary pressures from the real and financial sectors of the economy are weak and will remain so. these circumstances require maintaining a stimulating monetary policy over the period ahead. the monetary stimulus, transmitted through the low key interest rate and ongoing liquidity injection, provides the proper conditions for meeting our inflation target in the medium term. let me now proceed with an overview of the economic developments and key issues discussed at today ’ s meeting. * * * year 2013 was a difficult one for the albanian economy. aggregate demand and economic growth remained at low levels ; inflation fluctuated around bank of albania's lower targeted band, while the budget deficit and public debt increased sharply. the unfavourable economic environment, both at home and abroad, led to this performance. moreover, albania ’ s june parliamentary elections added uncertainties to the economy and financial markets. as we have already stated, consumption and investments continue to suffer from low confidence and tight lending terms. fiscal policy is faced with a high public debt level, which has limited the possibilities for macroeconomic stimulus. on the other hand, the external environment was characterised by ongoing euro - area problems, hence limiting our export growth and making financial markets pursue conservative policies in terms of lending to developing economies. however, 2013 saw positive developments. financial markets were characterised by improved liquidity and downward interest rates, in response to bank of albania's easing monetary policy. also, introducing new financial agents and instruments has further deepened these markets. the banking system remains solid and well - capitalised, regardless of increase in non - performing loans. the current account deficit has dropped, creating better premises for a sustainable external position of the economy and stable exchange rate. these developments have contributed to maintaining macroeconomic stability. analysing the specific developments in the second half of 2013, the official data show a slowing economic