Of course, consolidation itself should be carried out in a growthfriendly way and tilted towards a reduction in expenditure rather than an increase in taxation. Fiscal policies are embedded in a wider reform strategy comprising labour and product market reforms, measures to fight tax evasion and the reduction of non-performing loans (NPLs) to allow banks to lend again to Greek households and companies.
The agenda to make the financial sector responsive yet resilient has to include improving liquidity in the G-Sec market across the tenor, create a liquid yield curve to provide a basis for pricing private debt, further development of the corporate bond market, expanding the set  BIS central bankers’ speeches  5  of products and participants in the derivative market to provide adequate hedging options for credit, interest rate and forex risks, particularly at the long end and gradual capital account liberalization within the framework of financial and macro-economic stability.