Address made by the Governor of the Bank of Albania, Mr.Shkëlqim Cani, in the meeting ''Cash starts from me''.

Dear Ladies and Gentlemen,

Wishing the welcome and a nice work morning, I would like to extend on the behalf of me and of my collaborators the thanks for your presence in this room and to express all our respect and assessment for respecting this table with your estimated participation.

Bank of Albania, by November 10th of the last year was committed in a public campaign aiming the replacement of operations in cash with operations through banking system. The warrant argument, not only for the Bank of Albania, but for the Government as well, financial institutions, banks, for the business and the public in general, was the fact that in Albania considerably predominate operations through cash. Stated differently, nevertheless of the positive developments of banking system, business mature, government strengthening etc, Albania continues to remain a country where cash transactions predominate.

It is sufficient to recall present the fact that we continue to waste time throughout windows to pay the bills of electrical energy or telephone, that we withdraw the salaries through pay- rolls, that we pay local taxes, custom taxes, taxations or social insurances in cash, that in our portfolios there are no debit/credit cards and that we move outside Albania with high amounts of foreign currencies in our pockets, etc.

Bank of Albania and the Albanian Government, for this purpose, have established a middle - term program measures called « Beyond money », which essentially is the continuance of the campaign undertaken during November, but surely being upgraded with new elements, where are evident concrete steps, on which will be committed the Government, Bank of Albania and Banking System as well.

Surely the partnership of business community and the support of media and civil society will increase the success of this program, establishing in this way the bases on the modernizing of payments system in Albania and the approximation with the international standards we aspire.

The challenge on cash reduction exceeds the central institutions up to the banks windows, to local business, branches of taxations and customs authorities throughout districts, employees of public administration and the employers of private business.

Some days ago together with the staff of the Bank of Albania we had some meetings in Vlora, Saranda, Gjirokastra and Korça, where I discussed broadly with the business, banks branches and with the local community on «Beyond money » program. The support was absolute from both banks and business community, as well as from civil society and media, but their "conditions" were clear: open and fair competitiveness, correctness in implementing the law and reciprocal transparency from both the public and private business authorities in performing of the undertaken commitments and legal obligations.

Let me briefly stop on the steps I think each of the players of this table should undertake and without judging none of the counterparts, let's turn them on discussing and debating issues to work out the best solutions, of the sole target who to approach to banks.

In general, when there are commitments and duties, Albanian starts from the others. Differently of the other times, at the beginning we will stop on the commitments and duties of banking system itself, which we represent together with commercial bank, that have their managers/representatives present in this meeting.

Bank of Albania is identifying at the core the issue or said differently, which are the main causes of the considerable presence of cash in the economy. At the same time, there will be installed the contemporary system of e- payments clearing and is collaborating in modernizing the legal frame of e payments system, receiving a particular attention to the development and improvement of the legal and regulative part, that support the new instruments and actors of e-payments.

Banks already are invested on a wide and competitor process of opening and enlarging of ATM network, POS (point sale) turning them standard and integrated throughout the huge companies networks of plastic cards. The first new customers of them will be the employees of both the Ministry of Finance and of the Bank of Albania, that starting from June will draw the salaries through the bank that will supply higher priorities and benefits for them. The selecting process of banks was extremely transparent and after being examined the presented offers of the system, within the two - three coming days will be finalized the procedures that the employees of the Bank of Albania open their banking accounts, and during the forthcoming months there will continue the procedures as well as for the other public subjects and institutions.

The commercial banks should be prepared to afford the money inflow mainly in cash through bank transfers as a result of the due passing of transactions related with payments for the Government or with inflows in its favor or of public or private institutions and companies.

Regarding the operations with the business, it is indispensable the acceleration of the work to found the Office of Credits Information and the performing of the necessary adjustments on supporting its functioning. Any delay in this process will directly have impact on the amount and quality of banking products as well as on the lending process of business. On the other hand, the project implementation on Automatic Electronic Clearing House, which is thought to be finalized during the first half of 2005, we think it will increase the number of banking services, the quality improvement of present services, and the further approximation of the system with the domestic population and with the huge businesses as well.

The business it is seen as an important party in this effort to reduce cash use in economy. For, it will be placed on the center of the relationship: Government - business - bank, being established on the base of understanding and implementing of the legal regulative frame in force. On the other hand the authorities must guarantee equality, transparency and credibility, indispensable conditions to promote a sound business environment.

The business can and should aim in making evident the priorities of banking system, the usefulness of the support from this system to a sound business, the increase of the reputation of a certain business when it is a reliable customer of a bank, the insurance of an operation added to each business where there is a long - term correct relationship with the commercial bank. On the other hand, the business already knows the legal duty of the performance of over Lek 500 thousand transactions through banking operations, meanwhile I believe that "it will become enticed"from banks to fulfill through banking operations the payments of taxes, salaries and social insurances of the staff and the transfers with partners.

Being listed at the end, but not less important, sincerely I believe that the civil society and media will strongly support the program "Beyond money". Bank of Albania already owns the positive experience of media and civil society support throughout the campaign against the speculative increase of prices on the eve of holidays and we believe that this support will be extended again. Both the media and civil society will ensure to the program a high degree of reliability and increase its degree of success. This one not because public reliability to the bank goes through media and civil society, but as the understanding degree and public desire to concentrate its attention on any new development, that starts to be underlined through the general environment of our society, are rather defined by the attention and positioning of the civil society against it. On the other hand, we think that the media might perform rather well the role of monitoring/supervising the process to see in time and to measure the performance of commitments that are expected all to be commited in this meeting. This monitoring might serve as a positive stimulation that this process goes ahead and Albanians go near banks and consider them as partners throughout the process of financial support or of the insurance of their savings.

Thank You!