##anational european institutions to the asset purchase programme was a very important step in the monetary easing and economic stimulus policy : the programme will run to september 2016 at least, with a monthly target of €60 billion for the three programmes as a whole, although government bonds will be the main component of the purchases and of the increase in the eurosystem balance sheet. the programme is expected to give a significant monetary boost to the economy, keeping inflation in the medium term below, but close to, 2 %. the monetary stimulus transmission mechanisms include both the easing of financing conditions for households and firms and, indirectly, the depreciation of the euro. purchases of public securities will be allocated as follows : 88 % to euro area sovereign and national government agency securities, and 12 % to supranational institutions and international agencies resident in the euro area. of the 88 % of national government securities, 8 pp will be acquired by the ecb and the remaining 80 % by national central banks, according to their capital key in the ecb, with some special rules for national central banks whose government debt markets are so small that these targets cannot be met. purchases under the public securities purchase programme commenced on 9 march and, to 31 march, had reached over €47 billion, of which more than €5. 4 billion related to purchases of spanish public debt by the banco de espana and the ecb itself. with this expanded asset purchase programme in train, monetary policy may be said to have exhausted its room for manoeuvre. it should be added that the programme is already yielding its first fruit in terms of wholesale funding market prices and, more importantly, signs of easier financing conditions for households and firms. the politics of the monetary union i would like to conclude with some thoughts on the political environment in the euro area and its relationship to the economic recovery and the improvement in employment throughout the area. the crisis that commenced in 2007, which is still not completely over, has obviously exacted a high cost in terms of political support for what monetary union means. the monetary union, whose ultimate justification lies in the advantages it brings for economic growth and welfare, entails a common monetary policy and, as a corollary, relinquishing the possibility of using devaluation of the exchange rate as a national instrument to correct monetary and fiscal imbalances, and also the possibility of central bank financing of budget deficits ( known as “ monetary financing ” ). in this situation, there is

to start islamic finance operations here in mauritius, and welcome hsbc amanah to our shores. today, my colleagues and i who have worked on this subject for two years now feel a legitimate sense of fulfillment. and i can tell our friends from hsbc : you add depth to our financial sector. and give a new dimension to your long - established presence here. you also comfort us in our ambition to grow and develop our country as a major international financial centre. in these very difficult times that we are going through, when we inspect every passing cloud for any trace of silver lining, can we perhaps expect amanah to be the spark that we are looking for to re - energise our faltering economy? all our very best wishes to you and your team, and a very good day to all of you, ladies and gentlemen, who are here with us this morning for the launching ceremony of the very first islamic finance operation in mauritius.