Several countries, particularly in Africa, are experiencing a severe deterioration in both domestic and external debt, which may undermine their progress in economic and social development. We welcome the review of the Non-Concessional Borrowing Policy which highlights the weaknesses of current policies and identifies relevant areas for improvement.
Unfortunately, at present centrifugal forces seem to prevail, in Europe as elsewhere. Second, we need to explore carefully the degree of asymmetry of MAP tools over the financial cycle. In principle, MAP tools should be more effective during upswings, whereas during downturns market pressures may impose excessive constraints on intermediaries, making the policies of releasing the previously accumulated buffers less effective.