Transition experience so far has shown that high trade deficits were not just financed through official capital flows, which undoubtedly have played a key role, but also through remittances that have increased financing opportunities within current account. During the period 1994 – 2004, out of 6.3 billion USD current transfers that entered the country, 5.8 billion is estimated to be contribution of Albanian emigrants. economic developments. Although during the first stage of transition, inflationary and depreciation expectations were high, monetary policy reaction by the Bank of Albania of  1/5  keeping high (Lek) interest rates, ensured a normal inflow of remittances in Albania. Between 1994 and 1996 the attraction of foreign exchange inflow was further boosted by extraordinarily interest rates offered by pyramid schemes, reaching a historical peak level in 1996. A considerable drop in the volume of remittances was recorded during 1997 and 1999, a period characterized by a political and social unrest.1 With the return of serenity remittances inflow picked up again. The Bank of Albania estimations indicate that total workers’ remittances has reached around 1,028 million (one billion) of USD or 13.5 percent of GDP. This is main country export. Furthermore, remittances are estimated to be three times higher than foreign direct investments (FDI) inflow and its value exceeds by far official aid from abroad. I want to concentrate a bit more on the mechanism of transfers and on the ways remittances are used.
It’s also crucial because it complements, on the one hand, the fiscal stimuli launched by national governments, and on the other, the rapid and powerful intervention by the ECB since the start of this crisis. With all these measures now in 2/4  BIS central bankers' speeches  play, Europe is better equipped to respond to this unprecedented crisis. The agreement includes a generic reference to a future recovery fund that is yet to be defined. What criteria do you think it should meet? The ECB has always stressed the need for our Economic and Monetary Union to be completed in order for the euro area to become more resilient. On the one hand, we need a European deposit insurance scheme so that savings have the same protections in every country. We’ve also called for progress in capital markets so that euro area firms have access to more sources of funding. And in the fiscal sphere, we need a shared budgetary instrument that completes the monetary union. The fund that has been proposed could go in that direction, but its size and how it is funded remain open to discussion and will depend on future decisions by governments. In any case, the determination to present a shared response is very significant, because it is a strong political signal, and also a strong signal to the markets. Spain started the debate when it too voiced its opposition to the use of the ESM.