In particular, it cannot reduce the euro area’s unacceptably high level of structural unemployment. The main contribution the single monetary policy can make to the welfare of the people in the euro area will be the maintenance of price stability in the medium term.
The non-performing loans of banks nevertheless increased by more than R8.2 billion over one year to R27.4 billion at the end of June 1999, but the gross overdues of banks as a percentage of total loans and advances amounted to only 4.7% on this date; a level which is still low enough not to be of concern.