percent for fiscal 2012, and 0. 5 percent for fiscal 2013. compared to the forecasts made in july, figures were revised downward, mainly because of the change in the base year for the cpi, which takes place every five years and was conducted in august 2011. the base year is changed to revise the composition of the cpi basket and the weight of individual items, so that the cpi reflects changes over time in the variety of goods consumed, in lifestyles, and in consumer behavior. as a result of the base - year change, the average year - on - year rate of change in the cpi for january – july 2011 was revised downward by 0. 6 percentage point. d. uncertainty regarding the outlook while uncertainty persists regarding the outlook for japan ’ s economy both in terms of upside and downside risks, developments with respect to the following downside risks in particular require close attention. first, it remains highly uncertain how the european debt crisis will unfold. it will likely take a long time before the crisis is resolved. at the euro summit held on october 26, agreement was reached among the member states of the euro area on the reduction of greek debt, the strengthening of european financial institutions ’ capital bases, and the boosting of the lending capacity of the european financial stability facility ( efsf ) aimed at serving as a safety net at a time of crisis. the announcement of the agreement on these issues temporarily calmed international financial markets. however, as shown by the subsequent turmoil in the domestic political situation in greece and the discussions at the group of 20 ( g - 20 ) leaders summit in cannes, the details and implementation of the comprehensive set of additional measures agreed at the euro summit as well as the austerity measures of the relevant countries remain extremely uncertain. consequently, market participants remain wary with regard to the creditworthiness of european financial institutions. for example, interest markups, which serve as a risk premium, in interbank funds transactions in europe remain elevated and the situation is still tense. this is because the european debt crisis is no bis central bankers ’ speeches longer confined to the problems of countries with excessive liabilities, such as greece and italy, but is spreading throughout the euro area, and – triggered by a fall in confidence in bonds issued by these heavily indebted countries – a negative feedback loop has started to operate in which the decline in creditworthiness of european financial institutions and growing downward pressure on economic activity reinforce each other. under these circumstances, with the

mardayah kona yerukunondu : implementation of targeted financial sanctions speech of mr mardayah kona yerukunondu, first deputy governor of the bank of mauritius, at the workshop on the implementation of targeted financial sanctions, port louis, 20 november 2020. * * * mrs jennifer bairner, counter illicit finance advisor at the british high commission, ladies and gentlemen, i wish you all a very good morning. it is indeed a great pleasure for me to welcome you at the bank of mauritius auditorium for this workshop on implementation of targeted financial sanctions. i must, at the outset, extend our sincere gratitude to the british high commission and the financial intelligence unit for having provided us mrs jennifer bairner, counter illicit finance advisor and mrs anushka radhakissoon - pochun, manager legal of the financial intelligence unit, to partake their experience with us during this workshop. ladies and gentlemen, this workshop forms part of the bank ’ s outreach programme specifically designed to enable licensees to better understand their legal obligations. it also serves as a platform for the bank of mauritius, as the aml / cft regulator for the banking sector, to convey to its licensees its expectations regarding the implementation of their legal obligations. you will, today during the workshop, be provided with guidance to enable you to fulfil, in an effective manner, your obligations under the targeted financial sanctions regime. the united nations has during the past decades imposed a number of sanctions regimes. sanctions, in fact, are important tools in the hands of the international community to promote international peace and security. some of these sanctions regime, however, have been criticised for causing excessive suffering to civilian populations or inflicting economic damage on third states. to address these concerns, the concept of “ targeted sanctions ” was developed. these sanctions are designed to focus on groups of persons responsible for the breaches of peace or threats to international peace and security. the financial action task force ( fatf ) as the global standard setter on aml / cft, has also made it mandatory for countries to implement the targeted financial sanctions regimes to comply with the united nations security council resolutions relating to the prevention and suppression of terrorism and terrorist financing as well as the prevention, suppression and disruption of proliferation of weapon of mass destruction and its financing. the term targeted financial sanctions means both asset freezing and prohibitions to prevent funds or other assets from being made available, directly or indirectly, for the benefit of designated persons and