Nonetheless, competitiveness indicators for the Albanian economy reveal that there is a lot more to be done in this regard, to face competition both in the region and globally. The Bank of Albania is committed to maintaining monetary and financial stability through: a) A prudent monetary policy. We have ensured price stability, complied with the inflation target and anchored long-term expectations of the economy. This move has increased the space for harmonising better the short-term stimulation with the long-term stability of the economy. In response to shocks, we have progressively eased the monetary policy since 2009. This approach has brought the key interest rates to their record low to boost consumption and investments. The depreciation of the nominal and real exchange rate has provided another incentive for the Albanian economy, encouraging exports and discouraging imports. We have continuously adjusted our monetary operations to guarantee an increasing supply of liquidity against an expanded collateral base with longer maturity terms. Given the current situation of the Albanian economy, we believe that macroeconomic policies should continue to be stimulating even in the future. The need for stimulating economic policies is conditioned first by the fact that the Albanian economy is operating below its potential, as the demand may not guarantee a complete utilisation of capacities. Second, it is enabled by short and medium-term controlled risks to economic stability. In the context of harmonisation of fiscal and monetary policies, the Bank of Albania has supported the increasing orientation of the fiscal policy towards debt consolidation.
Therefore, I would like to invite all other stakeholders to be open-minded and very cooperative to boost lending to the economy. First, I would suggest to the business community to be more creative, transparent and formal in its operation. It should comply with all obligations arising from the contractual relations with the banking system. This should be broadly understood and accepted. A correction is necessary in the economy, first of all implying a rebalancing of prices. There may be no reduction in non-performing loans, increase in lending to the economy, improvement in business and bank balance sheets, unless collaterals are executed and, subsequently, fix asset prices are corrected. This process would release huge financial resources that would be a vital serum of fresh money injected back into the economy. With this fresh money we must encourage the creation of new and effective initiatives that yield swift return on investment. One of the lessons learned from the crisis is that any new healthy money should go to a healthy business initiative. We need to encourage highly productive sectors of the economy. This is the only way to ensure revitalisation of the economy and make it a dignified European partner. Second, I would like to encourage the banking system to be more dynamic, by looking continuously for worth-funding opportunities. Offer reliable funding packages by assigning priority to economic health of the country, which would, in turn, guarantee the long-term success of your business.