The first of the fronts, fiscal correction, means that countries having a fragile fiscal position now must correct it, as they have indeed committed to do. These countries fall into three categories. The first is Greece, which is actually deemed a special case now. The new EU/IMF adjustment program for Greece is crucial to foster sustainable economic growth and stabilize public finances.
Nevertheless, the weaker asset quality of banks at this stage is not a source of major concern. Banks have maintained high capital levels, with the capital-adequacy ratio for the banking sector amounting to over 13,7 per cent in June 2009, and continued to be profitable, albeit at a lower level. 6.