”. against this backdrop, the paris financial centre has many assets. paris hosts one of the most developed capital markets in continental europe, the first asset management industry, a leading bond market, the largest commercial paper market with neu - cp and the largest private equity investor in continental europe. moreover, paris offers an attractive pool of highly skilled staff in financial services. the french government and the french financial authorities, including the banque de france, are also working together to facilitating the dissemination of sound and safe financial innovations and fostering the scaling up of sustainable finance. these investments are protected by a very resilient banking system, accompanied by consistent regulation. let me remind you that paris is already home to the european securities and markets authority and will soon host the european banking authority. in addition, the paris court of appeal was granted an 3 / 4 bis central bankers'speeches international chamber last february, with international commercial affairs falling within its remit. that will duly complete the paris court organisation, which already includes an international chamber in its commercial court. last but not least, let me stress that the french authorities are making sure that the paris financial centre and its participants benefit from a streamlined and business - friendly regulatory framework, for instance in areas such as bond issuance and securitisation. meanwhile, significant efforts have been made by the french government to alleviate the tax regime and social contributions of “ impatriates. ” starting in 2016 under the previous government, they have been amplified by the new one, including on the eve of the business summit last january. * * * france is changing, for the better. but it is still dependent on its economic environment, obviously. let me conclude with two wishes. first : that europe is courageous enough to strengthen itself through this cyclical upswing. combining more reforms in france and more fiscal stimulus in germany, as will happen, is welcome but not sufficient : we need a stronger economic union in the euro area to avoid overburdening monetary policy by the next recession. and second, that the united states and the g20 are clear - sighted enough to address their economic challenges through multilateral answers, and not unilateral ones : here too, france is a reliable partner. 4 / 4 bis central bankers'speeches

##ching principle that has guided the work of this committee is that whichever asset class is open to a non - resident to invest in the domestic markets, should also be accessible to non - residents in international market through an appropriate institutional framework and safety measures, including compliance with kyc and other international norms. 12. as indicated earlier, the policy regime in respect of debt flows, particularly contracted borrowings commonly known as ecb, has a pronounced bias towards long term flows. the other restrictions at present relate to the type of lender, the type of borrower, the end use and the cost of borrowing. it is to be appreciated that these restrictions are aimed at controlling indiscriminate borrowing which has potential stability implications. recognising the large and typical borrowing needs of the infrastructure sector, we have effected several relaxations in this area. even though a framework of general permission may not be in place, we are open to the specific needs depending upon the compulsions of the borrower and the international practice. 13. the policy regime in respect of rupee denominated marketable securities – both sovereign and corporate debt – has undergone change over time mainly by way of consolidation and expansion of limits. at present, foreign portfolio investors are allowed to invest up to usd 25 billion in dated government securities and an additional usd 5 billion is available to the long term investors. similarly, a limit of usd 51 billion is available for investment in corporate debt. as a conscious policy stance, we have been trying to nudge the foreign portfolio investors towards investing in long term papers. it is to be appreciated that investment in short dated papers, treasury bills and commercial papers are essentially volatile and constitute interest rate play. this is not in sync with our policy imperative. accordingly, we have mandated last month that all fresh investment upon sale or redemption of existing investment in sovereign debt has to be necessarily in government dated security of a minimum residual maturity of 3 years. there is no lock in period and no restriction on selling the bonds to residents irrespective of their residual maturity. bis central bankers ’ speeches 14. let me state in this context, brief details of a pilot initiative taken last year. we were approached by ifc for floating a rupee denominated paper in international market with a view to investing the proceeds in the indian markets. ifc was permitted to issue usd one billion worth of such papers, which it has executed successfully. subsequently, asian development bank has also been permitted to float a