In times of hardship, it is necessary to have in hand criterions to temporarily apply “reduction ratios” to adjust capital requirements for the instruments most affected by the crisis resolution mechanisms. This is based on systemic factors, which are somehow involuntary for institutions operating under these conditions.
We still project that the small amount of excess supply remaining in the economy should be taken up as output growth moves above potential growth in the second half of 2003. Finally, let me say a few words on inflation.