Such an approach would have to be designed to limit the moral hazard implications, incorporating strict conditionality. But it can be useful as a means of supporting a country as it takes remedial policy action through bridging finance. The issue of the standstill is, as many of you will know, controversial in the sovereign context, notwithstanding the fact that an informal standstill plays a crucial role in corporate workouts. Voluntary debt rollover agreements with creditors or bond restructurings are, I believe, useful aspects of effective PSI. But historical experience of involuntary sovereign debt standstills, in the form of payments suspensions, has not exactly been encouraging – the process has often been inefficient and inequitable. Nevertheless, there are circumstances in a sovereign debt crisis where the immediate payments relief provided by a standstill may make an important contribution. An example would be where capital flight is pervasive because immediate policy adjustment is insufficient to bring about adequate voluntary private sector refinancing. In these circumstances, a standstill may realise the same advantages as in a corporate workout if it provides breathing space for remedial policy measures to be evaluated and put in place; if it promotes creditor co-ordination and avoids unjustified creditor preference by treating creditors of the same type equitably; and if it provides incentives to both creditors and debtors to reach a voluntary arrangement sooner rather than later.
The second measure relates to responsible investment by the Exchange Fund. The Exchange Fund now adopts a guiding principle that priority will be given to Green and ESG investments, if the long term return is comparable with other investments on a risk-adjusted basis. 11. Our third measure is the launch of the Centre for Green Finance under the HKMA’s Infrastructure Financing Facilitation Office, focusing on capacity building to facilitate the equipping of financial institutions with the knowledge, skills, tools and other resources in green finance. 1/2  BIS central bankers' speeches  12. In fact, we’re now in our developmental plan to prepare banks for the upcoming changes. A working group on the assessment framework has been in place since August, and today’s seminar marks the beginning of the capacity building programme for the Centre for Green Finance. On the other hand, the assessment framework will help banks understand their readiness for change, while the capacity building events will equip practitioners with the necessary knowledge for the changes. 13. For today’s seminar, we will first invite the IFC to provide an overview of the opportunities and challenges to green banking, and introduce some case studies on their approach to assisting banks in “greening” their operations. This afternoon, several banks will share their initiatives and practical experience on their green journey, including governance, risk management, disclosure and green products and business policy. 14. And here I would like to extend our special thanks to the IFC for their dedicated support for this workshop.