Consequently, the overall  Page 2 of 11  fiscal balance for SSA moved from an average surplus of 1,7 per cent of GDP2 in 2004-08 to a deficit of 4,9 per cent in 2016.
The recent announcements of bank recapitalisations and guarantee schemes have curtailed the upswing in the CDS spread in the financial sector. However spreads are still high compared to pre-August 2007 levels (see slide 8). Even sovereigns have not been immune to the increased credit risk valuations (see slide 9). Following the announcement of the rescue packages, the CDS-spreads for sovereigns seem to have stabilized.