However, both processes call for mechanisms that facilitate the economy’s efficient adjustment so as to cope with the challenges of a constantly changing environment for firms, consumers and policy-makers. All of which reinforces the urgency to pursue the structural reform agenda in the euro area in a determined and systematic manner. With this wider-ranging reflection, I conclude. Once again, welcome to this ECB workshop. I can rationally predict that it will be a very productive and enriching one. 4  BIS Review 46/2005
I have already mentioned on another occasion that, with the prudence due, I consider that the set of measures to support lending, in the form of guarantees and moratoria, along with the regulatory and supervisory actions I have referred to, have achieved the objective of cushioning the enormous initial impact of the crisis, preventing the situation of business illiquidity from leading necessarily to a solvency crisis. In fact, according to preliminary data gathered by the SSM, following the expiry of moratoria in various euro area countries, most borrowers resume payments and only a small fraction were unable to do so. The situation is evolving and thus the response required of the sector is also evolving. Unfortunately, the disease remains with us, and this justifies maintaining many of the exceptional measures to support the economy, in particular for certain sectors. Accordingly, the Government’s decision to extend the grace period by a year and the maturity of financing with an ICO guarantee by up to three years seems appropriate to us. In any case, although the consequences of the pandemic have yet to appear on bank balance sheets, the crisis will inevitably lead to structural changes. Not all economic activity will return to its previous levels. Banks need to be preparing now for this impact. More resources need to be allocated to risk analysis and management, including the active management of rollovers and renegotiations with those customers that will almost certainly not be able to comply with their original contractual conditions.