by lek 69. 3 billion, compared to the growth by lek 52 billion over the previous year. in 2006 the annual credit growth was 56. 7 percent, providing good support for economic needs. the relatively high pace of banking system lending to the economy has also continued over the first quarter of the current year, drawing our attention, as the regulatory authority of the banking activity, to the need to monitor any risks this expansion may comprise. more concretely, this growth has led to decrease of capital adequacy rate and liquidity ; however, banks have continued to be well - capitalised, liquid and profitable. quarterly stress - tests carried out by us have indicated that the country ’ s banking system is flexible against any probable shocks relating to exchange rate, interest rates or credit quality. the bank of albania has continued to prudentially monitor the rapid credit growth, enhancing its banking supervision. in this framework, the establishment of the credit registry, expected to be carried out within december 2007 is of special importance. currently, we are working for completing the legal framework that will enable the registry establishment and functioning. at the same time, the decision is already made on selecting the company that will provide technical solutions to the registry. we are confident that all these measures will contribute to the maintaining of credit quality and the financial stability of our country. wishing you a fruitful workshop, i give the floor to mr. watson. thank you!

ardian fullani : latest economic and financial developments in albania speech by mr ardian fullani, governor of the bank of albania, at the press conference on the monetary policy decision - making of the supervisory council of the bank of albania, tirana, 30 june 2010. * * * in its meeting of 30 june 2010, the supervisory council of the bank of albania analyzed and approved the monetary policy monthly report. after being introduced to the latest economic and financial developments at home and their projections for the future, at the end of discussion, the supervisory council of the bank of albania decided to keep the key interest rate unchanged at 5. 25 percent. * * * global economy attested to higher economic activity in the early months of 2010 fuelled by the recovery of demand in emerging countries, stimulating policies pursued by advanced economies and higher foreign trade. the prospects for global economy suggest that the recovery will persist in most economies. however, unemployment remains high, reflecting the low business confidence and scarce investments in expanding production capacities. inflation pressures, albeit low, maintained their upward trend in 2010 owing to the recovery of global demand. the financial markets were highly volatile in response to the key market players ’ concerns over the public debt - related issues in some euro area countries. the need for budget consolidation in most of these countries due to the deteriorated fiscal indicators is expected to affect the future economic developments on a large scale. the last g20 meeting, which represents the world ’ s premier forum for discussing economic policies, came up with a clear message about the need for fiscal consolidation and immediate efforts to rein in public debt. concerning the albanian economy, the available data attest to slow economic performance in the first four months of 2010. the poor performance of domestic demand components was offset by the higher contribution of foreign demand due to the considerable growth in exports. however, in line with our expectations, the bank of albania considers that economic activity has recovered gradually during this period. the recovery is expected to persist in the second half of 2010 as well. inflation has maintained downward rates due to the low inflation pressures generated by the domestic economic environment. the financial markets have been stable, featuring downward interest rates, an improved liquidity situation in the banking system and a more relaxed exchange rate. consumer spending continued to be affected by the restrained financial resources and low consumer confidence in the first half of 2010. indirect indicators like : the low growth of retail sales ; the decline of remittances and consumer loans ; and the slower employment indicators, attest