. underlying price pressures are expected to increase somewhat this year, owing to short - term supply constraints and the recovery in domestic demand, although they remain subdued overall, in part reflecting low wage pressures, in the 2 / 4 bis central bankers'speeches context of economic slack, and the appreciation of the euro exchange rate. once the impact of the pandemic fades, the unwinding of the high level of slack, supported by accommodative fiscal and monetary policies, will contribute to a gradual increase in inflation over the medium term. survey - based measures and market - based indicators of longer - term inflation expectations remain at subdued levels, although market - based indicators have continued their gradual increase. turning to the monetary analysis, the annual growth rate of broad money ( m3 ) stood at 12. 3 per cent in february 2021, after 12. 5 per cent in january. strong money growth continued to be supported by the ongoing asset purchases by the eurosystem, as the largest source of money creation. the narrow monetary aggregate m1 has remained the main contributor to broad money growth, consistent with a still heightened preference for liquidity in the money - holding sector and a low opportunity cost of holding the most liquid forms of money. overall, lending to the private sector remained broadly unchanged. the monthly lending flow to non - financial corporations showed a modest pick - up in february compared with the previous month. this was also reflected in a slightly higher annual growth rate of 7. 1 per cent, after 6. 9 per cent in january. monthly lending flows to households continued to be solid with the annual growth rate of loans to households remaining unchanged at 3. 0 per cent in february. the latest euro area bank lending survey for the first quarter of 2021 reports a moderate tightening of credit standards for loans to firms, following more significant tightening in the previous two quarters. heightened risk perceptions among banks were again the main contributor to the tightening, although their impact was less pronounced than in previous survey rounds. surveyed banks also reported a renewed fall in demand for loans to firms, mainly driven by a continued decline in demand for financing for fixed investment. with regard to lending to households, the survey indicated lower demand for loans for house purchase, while the credit standards for these loans eased slightly, supported by competition among lenders. overall, our policy measures, together with the measures adopted by national governments and other european institutions, remain essential to support bank lending conditions and access to financing, in particular for those most affected by the pan

gent sejko : albania's economic and financial developments in 2020 address by mr gent sejko, governor of the bank of albania, presenting the annual report 2020 to the parliamentary committee on economy and finance, tirana, 20 april 2021. * * * honourable chair, honourable members of the committee, thank you for the invitation and the opportunity to present to the committee, the annual report 2020 of the bank of albania! the report presents the contribution of the bank of albania to preserving the monetary and financial stability of albania – such a valuable achievement in the view of unprecedented challenges we have been facing throughout the previous year – and the measures we have taken in fulfilling our legal and institutional duties and commitments. the covid - 19 pandemic and the necessary measures taken to control it strongly hit the albanian economy. it caused a negative impact on : the volume of economic activity ; employment ; the financial situation of households and enterprises ; and on the domestic and foreign equilibriums of albania. in coordination with fiscal stimulus, the bank of albania implemented a complete package of macro - prudential, operational and monetary measures, which were aimed at preserving liquidity in financial markets, reducing borrowing costs, continuation of lending and maintaining uninterrupted flow of financial services. through these measures, the bank of albania enabled : the reduction of crisis financial cost to households and enterprises ; the avoidance of its transmission into the financial sector ; and the preservation of a calm monetary and financial environment, by establishing the premises for a faster recovery with the normalisation of the situation. hence, the impact of crisis on the economy was lower than expected, by showing both the positive effect of measures taken by public authorities and the flexibility and resilience of our economy and financial system. our forecasts show the albanian economy will turn towards recovery during 2021 with the gradual reduction of the negative impact of pandemic. the volume of economic activity is expected to shift on an upward trajectory in the medium and long term, underpinned by the favourable financing conditions, the reduction of uncertainties and the progressive recovery of both domestic and foreign demands. nevertheless, the guaranteeing of stable economic growth and the management of many - downside risks would call for ongoing attention and prudence. dear ladies and gentlemen, following, i will detail the directions and main results of our work over 2020. * * * 1. economic performance, price stability and the reaction of the bank of albania 2020 was a hard and challenging year, marked by the