is the return of inflation to the target at a shorter time. for that reason, we are engaged in a normalising cycle of the monetary policy stance, by increasing the policy rate to 2. 75 % from 0. 5 % during 2022. this normalisation aims at establishing a better supply - demand equilibrium for goods and services, by inducing the adequate stimuli for both the monetary and financial stability of albania. this stability - as we have continuously emphasised - remains the crucial precondition for the sustainable and long - term growth of the economy and for the social welfare and equality. forward looking, projections in our baseline scenario suggest inflation will reduce in the course of the next year, and return in our 3 % target in 2024. also, these forecasts show the albanian economy will continue to grow in the coming years. despite the growth will somewhat slow down the momentum in the short run, the stabilisation of monetary environment and the reduction of uncertainty will pave the way for a faster economic growth in both medium term and long term. last, but not least, our forecasts suggest that financial markets will continue to be calm, the foreign exchange rate relatively stable, and the soundness of financial intermediaries, including the banking sector, will not be jeopardised. allow me to highlight that this economic prognoses, first reflects the health of the private sector in the albanian economy. in recent years, this sector has marked a distinguished progress, in terms of finding new markets, strengthening operational efficiency, improving financial soundness, and enhancing its strategic vision. the rapid rebound of the albanian economy after the pandemic shock bests certifies this progress. i think that the qualities that helped private sector in that period : care for the employees ; collaboration among businesses, both in horizontal and vertical plans ; the right share of costs in all the production chain ; and the operational and financial flexibility will be important elements for tackling high inflation. in parallel, i believe that the banking sector will continue to financially support the businesses, by orienting funds towards profitable projects and most productive sectors. last, our prior task, as public decision makers, is to take the adequate measures to restrain the supply - side shock in causing long - term consequences in the soundness of the albanian economy. in this context, i assure you that the bank of albania will continue to be entirely devoted to guarantee the price stability and financial stability of albania. dear ladies and gentlemen, while, we have

ardian fullani : past and future banking reforms in albania and the region speech by mr ardian fullani, governor of the bank of albania, at the fifth international banking forum, athens, greece, 6 december 2006. * * * honorable dr. margret doyle, dear mr. chairman, distinguished participants, before starting my speech i would like to briefly address the perennial question that stands at the heart of our quest : “ are the prosperous times ahead of us? ” it comes to my assistance an old saying of one of your ancient philosophers, eupides : “ prosperity is full of friends ”. as we are gathered here as friends, i believe we have a positive answer to this question. i would like to thank “ the economist conferences ” for inviting the bank of albania in this very important forum. it is a great pleasure to be here today. the topic of my speech will be economic reforms. i will take this opportunity to express my views on past and future banking and financial reforms in albania and the region. the topic is not new of course. however, reforms and their implementation are a dynamic process that must reflect changes and expectations for future developments in both domestic and global markets. therefore, it will always be an open discussion in need for new ideas and solutions. central banks are important contributors to the economic reforms and their implementation. they not only welcome and support but also generate reforms in the capital, labor, and product markets. such reforms have ripple effects that go beyond economic benefit of a long run stable growth and financial stability. i believe that positive spillovers will be materialized in the south east european region ’ s prosperity and its economic and political integration in european union. the bank of albania has been a constant generator and supporter of reforms both institutionally and as the provider of stable prices, sound macroeconomic conditions and financial stability. it makes an undeniable fact that financial integration which we are experiencing will be to the forefront of european union integration process. it will ease the challenges and speed up the process of european integration which albanians have embraced by wide popular consent. like in many other transition economies banking reforms in albania were implemented as an integral part of the structural reforms undertaken to transform the albanian economy in a market oriented economy. continuous improvement, along with approval and implementation of new banking legislation and supervisory regulation ; liquidation and privatization process of the state owned banks ; and foreign ownership ; have change banking and financial markets. foreign banks have been an important push factor toward increasing efficiency, number