flows. this year, the world economy is projected to suffer a recession, combining drops in activity in the developed world with weak expansion in china. in this scenario, it is worth mentioning a contraction in the united states, where preliminary labor market figures point to a major impact on the economy. in the eurozone, the already low dynamism of its main economies ( i. e. germany, france, and italy ) and an already complex banking system situation, pose major challenges for stimulus policies. china will grow this year by 3 %, its lowest since 1990, with important repercussions in the rest of the world, both because of its integration in the value chains and because of its weight in the trade of some countries, including chile. the impact on trade is compounded by the negative impact on income as a result of falling commodity prices ( figure 4 ). especially relevant for chile is the drop in the copper price, which approached usd 2 per pound during march, and the forecast for this year is an average of usd 2. 15 per pound. this negative effect will be largely offset by the lower oil price, which dropped to levels between usd 20 to 30 per barrel in march. hence, the terms of trade deterioration should be less than 1 % in 2020. the drop in fuel prices will also help to contain the inflationary pressures and will contribute to sustain disposable income ( figure 5 ). a second transmission channel relates to the worsening of financial conditions. the global increase in risk perception and deep adjustments of financial prices restrict access to goverment and corporate funds. this has driven various central banks to take action to ensure the proper operation of the markets. in chile, among other measures, the cbc board adjusted the operation of liquidity programs it has been applying since november 2019, included corporate bonds among eligible collateral for all the liquidity operations in pesos offered by the bank and launched the purchase of banking bonds from the open - market operations system ( soma ) participants for an amount in uf1 equivalent to up to usd 4 billion. at our monetary policy meeting yesterday we also communicated that we will raise the amount of this bank bond purchase program to up to usd 8 billion. and for the outstanding balance ( usd 5. 5 billion ) the maturity constraint for eligible instruments will be eliminated. the steep drop in companies ’ activity because of social isolation of workers and clients and their inability to carry on their normal tasks has resulted in a significant increase in their financial

cross - border cooperation and information - sharing with respect to the major cross - border banking groups in the eu should be further enhanced. in particular, we consider that the cross - border arrangements between supervisors and central banks for the major eu banking groups can be further strengthened also with a view to enhancing preparedness for crisis situations. indeed, the recent financial market turbulence, whilst being correctly weathered until now, has confirmed the need for effective information sharing not only between supervisors, but also between supervisors and central banks ( without supervisory responsibilities ). this is important given the key role of central banks in ensuring the orderly functioning of money markets, promoting the smooth operation of payment systems, and contributing to safeguarding financial stability. against this background, the eurosystem strongly supports the ecofin conclusions on the eu financial stability arrangements adopted in october 2007, whereby the council invites the commission to assess possible clarifications in the legal framework for the exchange of information between supervisory authorities, central banks and finance ministries. in this respect, it is also useful to enhance the cooperation between supervisors and central banks at the operational level. in particular, the involvement of central banks in the supervisory colleges for the major eu banking groups, whenever stress situations so require, is an important aspect. another important strand of work to improve cross - border supervision relates to the further extension of the scope and depth of cebs ’ s project on “ operational networking ” in order to establish a sufficiently integrated, practical framework for day - to - day supervisory cooperation and to identify and address possible obstacles in this respect. finally, the supervisory colleges for the major eu groups should be committed to playing a pioneering role in developing enhanced processes for cross - border supervision, for example by pursuing with particular intensity measures to foster the enhanced cross - border delegation of tasks and efforts to build up a common supervisory culture. conclusions let me conclude. i share the thrust of the eurofi ’ s assessment – as expressed in the title to this session – that simply maintaining the status quo in eu regulation and supervision is not a suitable option for the way forward. instead, cross - border convergence and cooperation will need to continue to be stepped up significantly to safeguard financial stability and foster further integration and competitiveness of the european financial market. the lamfalussy framework provides the right institutional setting in this respect. the present review of the institutional framework provides a unique opportunity for introducing measures to enhance its effectiveness, from the provision of strategic guidance and impetus for the pursuit of enhanced cross - border cooperation and convergence