Overall, controlling the borrowing in the domestic money market, expanding the Government securities investment base and stabilising the risk premia in the economy create grounds for a better functioning of transmission channels in the future. Therefore, the Bank of Albania believes that the longterm public debt sustainability and public borrowing constraint in the domestic money market help enhance the monetary policy effectiveness and increase the space for the private sector credit of the economy. Monetary indicators were characterised by slowing growth rates in the second half of the year. They signal low monetary inflation pressures on the economy. The annual monetary supply growth averaged 5.9% in October and November, supported primarily by developments in the external sector of the economy. Money demand by the domestic agents of the economy was low. The increase in households’ participation in public debt securities was reflected in lower financing of this sector by the banking system. Businesses’ and households’ demand for funding decelerated significantly, reflecting the low demand for consumption and investments. Also, banks continued to pursue a more prudential approach in lending, applying tight standards in response to uncertainties perceived at sector level and the economy. Responding to them, annual growth of credit to economy reached 4% in November. Credit to economy was based on the 18% increase in ALL-denominated loans, against the 3.2% decline in foreign currency-denominated loans. Also, credit growth continued to be driven by increase in business loans, while consumer loans and home loans appeared rather low.
The European Commission and the European Investment Fund (part of the European Investment Bank Group) have launched the ”BlueInvest Fund” available for the “blue” economic activities. The funds are aimed at companies that develop solutions for renewable energy and “blue” biotechnology, among others. I will conclude my brief opening speech on a special, more personal note. Dear Mr. McDowell, this summer you will complete your tenure as Vice President of the European Investment Bank. On behalf of the Board of Directors of the National Bank of Romania, allow me to express our gratitude and highest regards for your activity during your mandate. Please accept the expression of genuine appreciation for your commitment, your dedication and your leadership, which have led to remarkable results in investments in the Romanian economy. We wish you all the best possible outcomes for all your future endeavours. I now invite Gyorgy Attila, State Secretary at the Ministry of Public Finance to take the floor. 1 1 NBR Annual Report 2018, pages 21 – 26  2/2  BIS central bankers' speeches