thus the bank balance sheet then represents a true and fair picture of the bank ’ s health, as a bank balance sheet is meant to. second, we want them to be realistic about the project ’ s cash generating capacity, and structure lending and repayment to match that. third, we want them to continue lending to viable projects, even if they had to be restructured in the past and are npas. the problem is that any forbearance in labeling loans npas on restructuring makes it easier to avoid disclosure and indulge in ever - greening. on the other hand, strict disclosure and classification rules could imply a cessation of lending to even viable projects. there are no clean solutions here given the kind of incentives in the system, and given the absence of an operational bankruptcy code in india. therefore, the rbi has had to adopt a pragmatic approach to the clean - up, creating new enabling processes. the rbi ’ s approach our first task was to make sure that all banks had information on who had lent to a borrower. so we created a large loan database ( crilc ) that included all loans over rs. 5 crore, which we shared with all the banks. the crilc data included the status of each loan – reflecting whether it was performing, already an npa or going towards npa. that database allowed banks to identify early warning signs of distress in a borrower such as habitual late payments to a segment of lenders. the next step was to coordinate the lenders through a joint lenders ’ forum ( jlf ) once such early signals were seen. the jlf was tasked with deciding on an approach for resolution, much as a bankruptcy forum does. incentives were given to banks for reaching quick decisions. we have also tried to make the forum more effective by reducing the need for everyone to agree, even while giving those who are unconvinced by the joint decision the opportunity to exit. we also wanted to stop restructuring of unviable projects by banks who want to avoid recognizing losses – so we ended the ability of banks to restructure projects without calling them npa in april 2015. at the same time, a number of long duration projects such as roads had been structured with overly rapid required repayments, even though cash flows continued to be available decades from now. so we allowed such project payments to be restructured through the 5 / 25 scheme provided the long dated future cash flows could be relia

christine lagarde : remarks at the summit for a new global financing pact speech by ms christine lagarde, president of the european central bank, at the summit for a new global financing pact, paris, 23 june 2023. * * * i am truly honoured to be with you here today at this important summit to address the most pressing issue of our time. eight years ago in paris, un secretary - general ban ki - moon opened the cop21 by stating that " paris must mark a turning point [ - ] " towards limiting global warming to 1. 5 ° celsius. 1 today, the window of opportunity to achieve this goal is closing before our eyes : the past eight years have been the warmest on record worldwide2 and the critical 1. 5 c threshold for annual temperatures will likely be exceeded in at least one year before 2027. 3 record - breaking droughts, heatwaves and floods are already plaguing the world. they are inflicting suffering and damage on every continent and serve as a mere glimpse into the future. it is everyone's duty to take every possible step to ensure that the paris climate goal is reached. not only is this a matter of justice for future generations, it is also undoubtedly a matter of justice and responsibility for today's. developing nations are already the hardest hit by the impact of global warming. one fact is glaringly evident : developing countries are poised to bear a disproportionate share of the impact. more than 90 % of those who have perished owing to extreme weather events during the last half - century lived in these countries, where more than 70 % of reported disasters occurred. 4 the path forward is clear : we must forge ahead with a global transition to ensure our economies are future - proof. this means not only reducing greenhouse gas emissions to net zero and adapting our economies to shield them from climate change, but also tackling the root causes of the severe destruction of nature that is threatening the vital resources we rely on for our survival. ecb research shows that in europe alone, over 70 % of our economy is highly dependent on nature's ecosystem services5 – a figure that is likely to be much higher in developing economies. in taking up this challenge, there are at least three levers we can use to boost the funding needed for a green and just transition on a global scale. first and foremost, it is up to governments to lead the fight against climate change and honour their commitments to