reserves kept in dinars from 20 to 40 percent with a view to providing banks with extra foreign currency liquidity and withdrawing any excess dinars from circulation ; - to encourage banks to keep the released excess foreign currency liquidity in the domestic banking sector, rather than to use it to repay foreign debts or to reduce foreign deposits ; - to resume organizing fixing sessions as early as today since the current level of margins and trading volumes are not satisfactory ; - to lower the net open position of banks from 20 to only 10 percent, in order to reduce their exposure to the exchange rate risk. in parallel, we have been drafting a decision to be adopted by mid - december to relax in 2009 requirements from some of the nbs regulations ( e. g. 30 %, 50 % and 150 % limits ). everybody says that serbia performs best when backed into a corner. well, we have been in that position for quite a while and some seem to have realized it only now. understanding your position is necessary, but not in itself sufficient. in most difficult times during the process of transition, one should step up and not rest on one ’ s oars. everybody is willing to help us, but no one will nor should do our job for us. thank you for your attention.

- and hence the riskiness of financial investment may change quickly and in an unpredictable way. again, it is important to recognise that such change is not limited to the tech sector. the general merchandise store chain that fails to adopt new it - based methods of inventory management will likely lose out to those firms which master the use of it. the other aspect is that risks become more firm - specific as the success of a company is becoming increasingly dependent on “ soft ” factors such as information on customers ’ preferences. for the financial system, these changes create the need for adjustment in three areas : the design of financial contracts, the valuation of firms and assessment of business risk, and the risk management of financial institutions. let me first look at the design of financial contracts. it increases the need for capital that bears business risk, and for corporate governance structures that create incentives to adapt to new ways of production. this points to a greater role of equity and of financial contracts incorporating equity characteristics, something that has been observed over the past couple of years. venture capital has offered a way to combine funding of high - risk projects, and managerial support, in a flexible way for new and innovative firms. established firms in the it sector, but also in other industries, have increasingly relied on public equity and on debt instruments incorporating equity characteristics. examples are convertible bonds, issuance in the high yield segment of the bond market, coupon step - up clauses, or bank loans which link the credit spreads charged to a borrower ’ s actual performance. one observation relevant for public policy is the importance of venture capital for the development of new industries. clearly, the venture capital market warrants the attention of public policy, including issues such as investment opportunities for institutional investors and the existence of market segments complementary to a functioning venture capital market. for example, a developed equity market is required as an exit route for venture capital investments, and for the provision of sufficient risk capital in the later stages of the corporate life cycle. the second set of issues relates to the valuation of firms in the equity markets. overshooting expectations, and swings in sentiment, are to some extent an unavoidable by - product of innovation. but in order to minimise such overshooting, looking ahead, one important issue is to identify mechanisms that support efficient equity valuation. consistent and open reporting of corporate accounts is one central issue in this respect. on the positive side, the huge loss in equity wealth has not triggered any major default among financial inter