extension of time for completion of projects has been allowed subject to certain conditions without change in classification of the loan. limited cost overrun financing has also been allowed. 2. banks are permitted to issue guarantees favouring other lending institutions in respect of infrastructure projects, provided the bank issuing the guarantee takes a funded share in the project at least to the extent of 5 percent of the project cost and undertakes normal credit appraisal, monitoring and follow up of the project. in other cases, banks are precluded from issuing guarantees favouring other banks / lending institutions for the loans extended by the latter, as the primary lender is expected to assume the credit risk and not pass on the same by securing itself with a guarantee i. e. separation of credit risk and funding is not allowed. 3. normally promoters ’ contribution towards the equity capital of a company should come from their own resources and they should not normally grant advances to take up shares of other companies. however, banks have been permitted to extend finance for funding promoters ’ equity in cases where the proposal involves acquisition of shares in an existing company engaged in implementing or operating an infrastructure project in india, subject to certain conditions. 4. banks have been allowed to structure loans flexibly, ( what is called as the 5 / 25 scheme ) so 2 / 5 bis central bankers'speeches that the repayment schedule is aligned with the cash flows. 5. banks can raise funds from the market by way of infrastructure bonds, and the assets financed by such funds are exempted from the priority sector lending requirements and the funds raised are exempted from reserve requirements. more recently, we have allowed banks to raise such funds by way of masala bonds, as well 6. an efficient bond market is an important requirement for raising funds for the infrastructure sector. this will de - risk the banks ’ balance sheets as well. we are taking several measures in this regard. as a part of this we have allowed banks to provide credit enhancement for bond issuances, subject to certain conditions. in fact we have more recently allowed banks to jointly provide ce up to 50 percent of the bond issue. 7. cost of funds is an important element for infrastructure. at the same time, the financiers at the pre - construction stage need to be compensated for construction risk. important measures like allowing setting up of idfs, both as nbfcs and mutual funds, to take over the post construction assets from banks, allowing take out financing etc., have been taken

globally and there are extremely high uncertainties over future developments. that said, japan's economy is likely to improve gradually from the second half of this year. as with the global economy, however, preventive measures taken by firms and households will continue to act as a force constraining economic activity while vigilance against covid - 19 continues. thus, it will likely take time for economic activity to return to the pre - covid - 19 level. the baseline scenario in the bank's july 2020 outlook for economic activity and prices ( outlook report ) assumes that the timing of japan's real gdp returning to the level of fiscal 2019 will be around fiscal 2022. as for prices, the year - on - year rate of change in the consumer price index ( cpi ) is expected to be negative for the time being, mainly affected by covid - 19 and the past decline in crude oil prices. thereafter, it is likely to turn positive and accelerate gradually with the economy improving ( chart 8 ). as presented in the july outlook report, the cpi is projected to be in the ranges of minus 0. 6 to minus 0. 4 percent for fiscal 2020, 0. 2 to 0. 5 percent for fiscal 2021, and 0. 5 to 0. 8 percent for fiscal 2022. that said, the aforementioned outlook for economic activity and prices entails high uncertainties and risks are skewed to the downside. first and foremost, the risk is uncertainties over the consequences of covid - 19 and their impact on economic activity at home and abroad. if strict public health measures are reinstated, reflecting developments in covid - 19 in japan, economic activity can be constrained to a large degree. the second risk factor is that, if the real economy remains depressed and the challenge for economic agents shifts from liquidity to a solvency problem, a vicious cycle will emerge in which the real economy is pushed down further through the impact on the financial sector. third, attention also should be paid to the risks that medium - to long - term growth expectations of firms and households will decline and that their spending attitudes will become cautious. it is necessary to pay utmost attention to future developments regarding such risks. in addition to these, there are various risks such as an intensifying tension between the united states and china, geopolitical risks, the strengthening of protectionist moves, and natural disasters. once the risks to economic activity materialize, prices will be affected considerably as a matter