This is important because, to the extent that macro-prudential measures mitigate credit booms by raising banks’ cost of equity, this effect can be offset if there are large inflows from abroad that lower banks’ cost of debt.
The Stability Pact for South Eastern Europe has been assisting the difficult catching-up process of this region. We will hear more on this pact later today. For completeness, let me shortly mention the case of Turkey. Last month, the European Commission recommended to start accession negotiations with Turkey.