Most part of this increase is expected to be the outcome of the foreign currency purchase from the Bank of Albania. Table 8. The difference as to trimesters of the gross foreign currency reserve of the Bank of Albania. (USD million) December 2003  T1  T2  T3  T4  December 2004  973.8  0  15  20  10  1018.8  The remaining part of Lek 1.7 billion is expected to come from the increase of the commercial banks reserves at the Bank of Albania. Net foreign currency assets of commercial banks will increase by Lek 1.5 billion, or 2.2 percent. The NFCA increase of commercial banks is forecasted to be at a low level, despite the annual increase by Lek 17.7 billion of deposits in foreign currency. From this sum, nearly Lek 14.5 billion are expected to be used in financing the private sector borrowing, while the remaining part will raise the commercial banks reserves at the Bank of Albania. 3.2.2  Credit to the government  During 2004, the internal borrowing of the government in covering the budget deficit is forecasted to be Lek 22.6 billion, while privatization is expected to cover nearly Lek 2.8 billion. Participation from  3  Borrowing from the Bank of Albania is presented in a positive sign; investment of free funds by the Bank of Albania is presented in negative.
By adopting the new banking law in the Republic of Albania and a range of other monetary policy and banking supervision-related decisions, we have aimed at firming up the macroeconomic balances further and strengthening financial stability. At the focus of the Bank of Albania’s strategy were the good governance and better risk management, improved banking activity transparency to the customer and the strengthening of internal control. This strategy peaked with a large-scale, exceptional and contemporary programme of open and constant communication with the public. I believe that the favourable liquidity and capital situation characterizing the Albanian banking system on the eve of the financial crisis last fall helped to cope with the withdrawal of deposits during September-October 2008. However, the Bank of Albania deemed as necessary the prudent monitoring of the situation and took a number of actions, which alleviated the pressures over the banking system substantially. These actions helped to relax the liquidity situation and they were in harmony with the ECB’s operational response to the crisis. First, an ad-hoc task force was set up. Its main responsibility was and remains the daily monitoring of each individual bank. Our direct conclusion was that the analysis should consider all micro-level aspects, each and every cell of the system and indicators. Second, a number of facilities were adopted for the incessant supply of the system with the required liquidity.