in this instance, our remedies for the crisis will be in step with our long - term priorities. at the national level, any initiatives to further education, professional training and more skilled employment will continue to be the best investment for growth : france had fortunately created one million extra jobs during the four years preceding the coronavirus shock ; tomorrow, it will still be through our wealth - producing work that we will cover the price of this shock. 2 / how to treat the debts inherited from the crisis? secondly, the question of public and private debt will arise. a necessary response will involve strict fiscal management to bring down the deficits : given that an increase in taxes would not be widely accepted, we will have to fall back on a more selective fiscal policy and lower public spending. this type of effort will only show results in the medium term as, in the immediate aftermath, help will be needed to kick start the economy. two more specific and more difficult proposals have also been mooted. some support a transfer of private debts to public debts, given that the businesses were not responsible for their loss of activity and only the state has page 7 of 8 the capacity to play the role of insurer of last resort. this is a solution envisaged by the former president of the ecb, mario draghi. this can also meet the need for a movement towards grant or equity investment mechanisms for certain businesses, rather than simple loans. these transfers would have the advantage of protecting means of production from the risk of payment default. they are, however, costly for public finances and complicated to put in place. the second proposal, which can be cumulative, is to treat the one - off debt inherited from the crisis separately. the advantage of ring - fencing debt, which was notably used in the 19th century – it led to the creation of the french caisse des depots et consignations after the napoleonic wars – is that it preserves “ ordinary ” fiscal policy. how this one - off debt should be amortised, however, remains unclear. a more positive alternative is to mutualise debt with more robust countries : this is, of course, the post - war marshall plan, but it necessitates a global or european solidarity that is unfortunately uncertain. however we do it, we will have to bear higher public debts for longer, even though the burden will be lighter if interest rates remain very low. and this brings me to monetary policy. 3 / how to use monetary policy

a flexible, riskbased approach will also allow continued innovation to take place, while ensuring the resultant risks are appropriately managed. second, we need to develop a wider range of tools to detect and mitigate risks. in conventional finance, work is underway in reviewing shortcomings in capital adequacy and liquidity management in the basel ii framework, as well as the provision of clearing and settlement infrastructure for derivatives. for islamic finance, we need to continue to develop instruments that help to mitigate risks. bahrain ’ s initiative in developing the liquidity management centre 7 is an excellent example of such an effort. in this regard, i am pleased to announce that the monetary authority of singapore is now in the final stages of setting up a sukuk issuance facility. i had announced, at this may's islamic moneysense is a national financial education program in singapore covering three tiers of financial literacy – basic money management ; financial planning ; and investment know - how. details on moneysense are available at www. moneysense. gov. sg. murabaha - based asset financing refers to mark - up asset financing, commonly used in home financing and car financing. in such a transaction, banks generally purchase the asset to be financed, and then sells it to the customer at a mark - up, to be paid on a deferred basis. ifsb - islamic financial services board ; idb – islamic development bank ; aaoifi - accounting and auditing organisation for islamic financial institutions ; iifm - international islamic financial market. the bahrain monetary agency was the primary sponsor in establishing the liquidity management centre. financial services board summit, singapore's plan to set up a facility to provide shariahcompliant regulatory assets to these financial institutions as part of our efforts to promote the growth of islamic finance in singapore. the sukuk structure is based broadly on the al - ijarah structure, or the sale - and - leaseback of an underlying property. sukuk issued by the facility will be given equal regulatory treatment as singapore government securities, or sgs, and returns will be tied to the risk - free yield of sgs of equivalent tenor. the facility is open to all financial institutions that plan to or are currently carrying on shariah - compliant financial services in singapore. we are issuing on a reverse enquiry basis, which means we can size and time the issuance according to the needs of the financial institutions. a