Here I would like to stress the importance of sustainable fiscal policy. To illustrate my point, I would like to discuss the positive developments in Estonia. The country has used succesfully a currency board arrangement through the turbulent period in the 1990’s.
In the last three years, the SBP has cancelled the licence of one of the commercial banks - the first of its kind, has changed the ownership of two banks, allowed mergers and amalgamation of half a dozen banks, forced change in boards of directors and debarred a few directors and managers from banking profession.