needed to achieve the budgetary targets should be fully specified. all countries must ensure that confidence in the sustainability of public finances is guaranteed. the governing council welcomes the fact that a number of euro area governments with the highest deficits and strongly increasing debt levels have adopted additional fiscal consolidation measures and set out more ambitious fiscal targets. in this context, we took note of the spring 2010 orientations for fiscal policies in euro area countries agreed by the euro area finance ministers on 7 june, and welcome the commitment to take additional measures, where needed, in order to ensure the achievement of the budgetary targets for 2010 and beyond. it is indeed key that the new budgetary targets be achieved. the governing council fully agrees with the ministers on the priority of halting and reversing the increase in the debt ratio and welcomes the commitment to take immediate action to that effect. for all euro area countries, structural reforms leading to higher growth and employment are crucial to support a sustainable recovery. existing competitiveness problems, as well as domestic and external imbalances, need to be urgently addressed by the countries concerned. to that end, wage - bargaining should allow wages to adjust appropriately to the competitiveness and unemployment situation. likewise, measures that increase price flexibility and non - price competitiveness are essential. finally, an appropriate restructuring of the banking sector should play an important role. sound balance sheets, effective risk management and transparent, robust business models are key to strengthening banks ’ resilience to shocks and to ensuring adequate access to finance, thereby laying the foundations for sustainable growth, job creation and financial stability. we are now at your disposal for questions.

njuguna ndung ’ u : initiatives to foster the growth of the kenyan sme sector remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at a breakfast meeting celebrating the long collaboration between diamond trust bank and the international finance corporation ( ifc ) to support kenyan smes, adding new focus on very small enterprises, nairobi, 5 october 2012. * * * executive vice president and chief executive officer ifc ; jin - yong cai chairman, diamond trust bank kenya ltd ; abdul samji managing director, diamond trust bank kenya ltd ; mrs. nasim devji board members ; management and staff ; distinguished guests ; ladies and gentlemen : i am pleased to be here this morning and i thank diamond trust bank for the invitation. this breakfast meeting is to celebrate the long standing collaboration of more than thirty years between diamond trust bank ( dtb ) and the international finance corporation ( ifc ). before making my remarks, i would like to congratulate mr. jin - yong cai on his appointment as executive vice president and chief executive officer of ifc. ladies and gentlemen : as the world ’ s leading private sector development institution, ifc has continued to support public policies and investments that create opportunities for the poor developing economies. the activities of ifc have helped developing countries register improved growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. in financial year 2012, ifc ’ s investments reached an all - time high of more than usd20 billion, leveraging the power of the private sector to create jobs, spur innovation, and tackle the world ’ s most pressing development challenges. this is how dtb ’ s long - standing relationship with ifc has thrived. ladies and gentlemen : dtb has operated in east africa for over 60 years starting off as a small financial institution in mombasa. dtb ’ s focus and commitment to enhancing convenience for customers through branch network expansion has driven the bank ’ s growth in recent years and it currently has 79 branches in kenya, tanzania, uganda, and burundi. the bank became the first bank in east africa to join the ifc africa micro and small micro enterprises ( msme ) finance program in 2008 which provides advisory services to commercial banks seeking to expand their msme banking services. i am also informed that dtb is working closely with the ifc advisory services program to strengthen its positioning in the msme market segment. ladies and