This illustrates how the  1  BIS Review 15/2000  creation of the euro has opened up new funding sources for a wider range of issuers, and I have no doubt that the euro-denominated high-yield bond market will continue to grow as confidence in the euro bond market increases. A second reason for the large increase in issuance in 1999 was the increase in confidence of both investors and issuers as the effects of the emerging market crises subsided. With this increased confidence came increased appetite for credit, and this not only gave borrowers from further down the credit spectrum the opportunity to access markets - which they took - but also allowed issuers who had pulled out of the markets during those turbulent times to return. So overall it is satisfying to note that the bond markets were not only more active than they have been in previous years, but that they have also been accessible to a wider range of borrowers than in previous years. Finally, right at the end of the year - literally - we all faced the challenge of preparing for Y2K. As we know now, the world’s financial markets survived the dreaded Millennium Bug, thanks in large part to the efforts of very many of you, and your IT colleagues, in making sure that we would. And we at the Bank like to think we played our part too. Now I am not one of those who feel that all our work, yours and ours, was unnecessary.
From the perspective of underpinning policies, economic activity expanded, favoured by the following: The accommodative monetary policy and the favourable financing conditions, in both domestic and foreign markets; The fiscal consolidation, which has reduced the impact of the public sector on the domestic financial markets; and The structural reforms programme, which, irrespective of the short-term costs, have started to yield initial results. Economic growth has contributed to the overall improvement of Albania’s economic and financial balances. In line with our previous statements, the following is notable: Inflation edged up slightly, despite the containing effect of the sharp appreciation of the exchange rate, suggesting that the improvement of the cyclical position of the economy is beginning to be reflected in higher wages and other production costs; Albania’s external position has improved, reflected in the narrowing of the current account deficit;  Budget deficit remains low and public debt has trended down; Lastly, Albania’s financial system is stable. The Albanian banking sector shows stable or improving capital, liquidity and profitability indicators. Our analyses and stress tests suggest that the sector is resilient to potential stressful situations, thus guaranteeing its ability to withstand shocks. 1/3  BIS central bankers' speeches  Such analyses show that the foundations of the country’s development remain relatively solid. The analysis is reflected also in our projections. In the baseline scenario, these projections suggest that economic growth will continue in the medium-term horizon, production capacities will be utilised in fuller terms, and inflation will converge to the central bank target by 2020.