This convergence was telescoped into the past decade, whereas other developed countries raised their living standards over a much more prolonged period since the Second World War. One result of this more concentrated convergence process has been pressure on the country’s infrastructure. This is currently being addressed in a very substantive way, although it is not something that can be done overnight.
Banks that were highly exposed to strained European sovereign debt have reduced their lending to the private sector. BIS central bankers’ speeches  1  Thus, the current regulatory treatment is incompatible with the principle of individual responsibility; the market interest rate no longer reflects the riskiness of the investment.