Privatization initiatives noted earlier will also require investment of tens of billion of riyals. In addition, the maintenance and expansion of infrastructure in the various sectors will require significant pools of capital. A rough estimate of the financing needs of the projects announced so far by the Government over the next 10 years exceeds USD 500 billion. However, the way that these financing needs are met by the Banks and capital markets in future is likely to be different. First, these projects and initiatives will require longer term financing which will be difficult to finance through traditional bank loans. Second, it will require a mixture of equity and debt obligations. Third, the funding could be multi-currency  4  BIS Review 85/2007  and attract multinational institutions and investors. Fourth, it could take form of various types of capital instruments, not yet seen in the Saudi and regional capital market including corporate bonds, debentures, mortgages, subordinated loans, preferred shares, etc. Also, there will be an opportunity to raise funds through Islamic finance instruments such as Sukuks and Ijara. It is no doubt that the financing needs of Saudi Arabia will require a collaborative effort by Saudi authorities, Saudi banks, and the regional and international banks. It will also requiring tapping various investors through the domestic and regional capital markets. Each will have an important role to play in this process.
To do that, trust should be rebuilt between the countries of Europe. Trust is vital. From a French perspective, how can that trust be re-created? By carrying out reforms, and France is doing that. And by reducing deficits even more? By continuing to reduce the deficit so that debt falls and France is ready when growth slows down. And by making further cuts in public spending? It is not for the ECB to tell the French government what needs to be done in detail, but what we wish is for France to have the capacity to respond economically when growth slows down and for it not to depend completely on monetary policy. 2/2  BIS central bankers' speeches