Commercial banks and other financial market participants need to incorporate those lessons into their risk-management practices. Bank supervisors need to encourage and monitor banks' efforts to strengthen their practices and we need to consider how regulatory and supervisory policies should be modified to reinforce incentives for sound practices.
Given that the primary balance is better than expected but still broadly in deficit, the fall in the debt burden compared with 2020 is the result of the large differential, which is negative by more than 5 percentage points, between the average cost of the debt and nominal GDP growth.