In August 2007, the difficulties emerged when it was recognised that some of the assets – initially those backed by sub-prime mortgages – turned out to be more risky investments than previously thought. This meant that structured investment vehicles (SIVs), hedge funds and other investors suffered losses in relation to the value of these securities.
Second, we implemented large and comprehensive packages of both monetary and fiscal policies, but we stayed prudent and kept public debt to GDP ratio well under control. We also increased our FX reserves since the pandemic. 3. Third, it is also the timeliness of these packages that kept business and consumer confidence. 4.