I believe that the implementation of Basel II in Greece will yield significant benefits because of its effects on the risk profile and the risk management systems of banks in the evaluation of their capital adequacy. This, after all, is a key determinant of their capacity to absorb adverse shocks.
Jorgen Elmeskov indicated that debt beyond a threshold level can adversely affect growth. Hence, debt reductions should be aimed by improving primary balance and raising productivity growth. Parthasarathy Shome suggested that the solution to the present economic crisis led by European sovereign debt crisis lies in austerity through stronger IMF surveillance. Summing up the proceedings of the session, Dr. K.C.