On the other hand, the results also show the effectiveness of the measures implemented to date to mitigate the impact of the crisis. Such measures include most notably the guarantee  7  programmes, the ECB’s extraordinary refinancing measures and the recommendation to banks not to pay out dividends, thereby strengthening their resilience. Under the harsher scenario in which the cumulative decline in euro area GDP mounts to 6% by 2022, the 5.8 pp reduction in the solvency ratio is much bigger, leaving average CET1 at 8.8% of risk-weighted assets. Moreover, under this scenario a significant proportion of banks would remain below the minimum prudential requirements. As you know, the probability of this scenario materialising is low but not negligible; should it do so, it might possibly be necessary to adopt additional measures to those already implemented. I shall return to this issue later. The latest developments in Spain’s public finances reflect the impact of the pandemic, which has been particularly severe in our country, and of the measures adopted to contain it. All of which has translated into a significant increase in the budget deficit and public debt, and also in the contingent obligations assumed by the different tiers of government. Specifically, general government debt stood at 110% of GDP in June (14.6 pp more than in December 2019). The Banco de España’s macroeconomic projections forecast a very marked deterioration in the general government balance for the whole of 2020 and a partial correction in the following two years.
Meanwhile, aiming to enhance connectivity, since June of last year the Bank of Thailand has undertaken Foreign Exchange Regulation Reform to relax 4/5  rules on foreign exchange controls and make foreign exchange-related transactions more digital, flexible, and accessible. To give a few examples, foreign exchange transaction forms were completely abolished, which should reduce document-related burden for the private sector; the working scopes of money changers and money transfer agents are expanded so that they can better facilitate retail cross-border transactions; and commercial banks can now provide direct Thai Baht loan to non-resident companies established in the Greater Mekong Sub-region (GMS). These efforts will improve connectivity as well as ease of doing business in our region. Fourth, we must foster greater cooperation on cyber security to ensure resilience of our financial systems. Arising with new forms of financial technology is our increased reliance on data transmitting devices and data usage; these come with greater risks of cyber threat. And, globally the number of threat incidents have been rising. Cyber security should be one, if not, the top priority for catalysts like us going forward. Ladies and gentlemen, The Bank of Thailand looks forward to working closely with other central banks, government agencies and, very importantly, private sector participants in the ACMECS region to support adoption of financial technology to promote economic and financial developments.