Central banks of advanced economies have stated clearly that they will continue to apply the quantitative easing, as long as inflation remains below the target and unemployment remains high. Actually, the so-far solutions have been in forms never experienced before. In fact, they pose new challenges with regard to implementation and potential risk spillover effects projected in the long run. Under these circumstances, the Bank of Albania, considering the situation as rather complicated and after an intensive work, has succeeded in designing a full package of measures. They aim to boost credit and improve micro and macroeconomic balances of financing the economy, about which I will inform you in the following. Package of credit recovery The idea about the package that we are introducing today occurred last year, where we discussed, jointly with you and representatives of the Ministry of Justice, about legal amendments needed to promote collateral execution. Since that meeting, our experts have worked intensively for enriching it and bringing it to today’s form. The package consists in three pillars: legal pillar; monetary policy pillar and prudential pillar. I will dwell on them in the following: 1 – Legal pillar The rapidly increased non-performing loans in the recent years, reflects, inter alia, a number of known and unknown problems of collateral execution. Therefore, together with the banking industry, we have identified and made relevant proposals for a higher efficiency of the collateral execution process.
In consultation with other important stakeholders in this  BIS central bankers’ speeches  3  process, legal amendments to the Civil Procedures Code and to the Civil Code have been drafted. These amendments aim to accelerate the obligatory collateral execution, avoiding procedural delays caused by bank debtors. More specifically, the proposed amendments address the following: •  Courts do not take measures to secure charges/sues, when the bailiff actions are rejected;  •  Courts do not take measures to secure charges and do not suspend the execution of collateral, when the debtor requests the invalidity of the executive title, arising from a bank credit;  •  Reduction by 50% of the initial price of the immovable property, placing an acceptable average for the debtor and the bank, and making clearer the value (price) of the item with which the second auction begins. We are informed by the Ministry of Justice that these amendments are in process of finalisation and this legal package will be sent for approval to the Council of Ministers and then to the Parliament of Albania. I take this opportunity to iterate the need for these legal proposals to be approved by the Assembly of Albania at an earlier time possible. Improvements in the legal framework and collateral execution practice would provide public authorities with new spaces to boost lending in Albania. 2 – Monetary policy pillar I mentioned earlier that Bank of Albania’s monetary policy has been easing recently, undertaking 6 consecutive key interest rate cuts.