This will ease the banks’ ability to mobilise funds for their ongoing operations. At the same time, since these loans are to be purchased by NAMA at “long-term economic values” (not far above current market prices), the purchases will serve to crystallise losses on the banks’ books in amounts likely to be in excess of the provisions already taken.
The answer is: We have been very aggressive [in terms of tightening monetary policy]. So, what have we done? As you can see, initially, the peso was depreciating; it depreciated quite a bit [in 2022]. Indeed, by September to October of last year, the depreciation was around 14 percent.