other partners in the project will conduct similar reviews of nondepository subsidiaries of thrift holding companies, independent mortgage lending companies, and mortgage brokers doing business with these entities. the partner agencies intend to share information about their findings with each other, review the lessons learned, and seek additional ways to cooperate to ensure effective and consistent supervision of these entities. at the conclusion of the reviews, the agencies will analyze the results and determine whether to continue the project and, if so, how to focus future reviews. finally, i would like to say a few words about what the federal reserve is doing to help borrowers who may be facing difficulty paying their mortgages. undoubtedly, foreclosures can have a devastating impact on borrowers, lenders, families, and communities. to the extent possible, efforts should be made to avoid foreclosure. toward that end, the federal reserve along with the other agencies have encouraged lenders and servicers to identify opportunities to work with borrowers confronting mortgage delinquency or foreclosure. for example, lenders and servicers may be able to assist troubled borrowers by modifying the robert b. avery, kenneth p. brevoort, and glenn b. canner, " the 2006 hmda data ", the federal reserve bulletin, september 2007, http : / / www. federalreserve. gov / pubs / bulletin / 2007 / pdf / hmda06draft. pdf. loan, deferring payments, extending the loan maturities, converting an adjustable - rate mortgage to a fixed - rate or fully - indexed loan, or capitalizing delinquent amounts. the best outcome is a loss mitigation strategy that results in a mortgage obligation that the borrower can meet in a sustained manner. the use of these and other loss mitigation techniques is consistent with guidance that emphasizes the importance of prudent underwriting practices to help ensure that borrowers can meet the terms of their mortgage obligation and maintain homeownership. conclusion in closing, i would like to reiterate that the federal reserve is committed to using its broad range of policy and supervisory tools to support efficient and fair markets. i have touched on the ways the federal reserve has used some of its tools and described the various efforts we have under way. i assure you that the federal reserve will continue to use these tools, as well as to examine various other authorities, to respond in a deliberative and balanced

##tments, minority stake sales, higher psu dividends, hiking urea prices and widening services tax net are part of the recommended strategy. the bottom line is that a workable path to fiscal consolidation is available – be it through the kelkar committee or through the rolling targets set following the 13th finance commission. what is important is to get there or at least very close to there through sustained efforts and not become lax in face of political or electoral cycles. it is expected that the government would take further aggressive steps to prevent fiscal slippage this year and complete its borrowing programme broadly in line with what was envisaged and without any undue pressures in the financial markets. this can make substantial contribution to keeping interest rates low and reviving the economy. in fact, the recent announcement of the central government ’ s borrowing calendar for the second half of 2012 – 13, which sticks to the budgeted borrowing figures reflect government ’ s resolve for containing the gross fiscal deficit ( gfd ). it is, however, imperative that further strong measures forfiscal corrections are implemented in the rest of the year broadly in line with the kelkar committee recommendations. recent appreciation of the rupee has, besides mitigating the risk of imported inflation, would also bis central bankers ’ speeches greatly aid in containment of gfd by way of reduction in subsidy burden of the government arising out of high rupee cost of imported oil. the trends in the external sector are also showing signs of some improvement after considerable stress witnessed last year. the cad / gdp ratio declined to 3. 9 per cent in q1 of 2012 – 13 from 4. 5 per cent in q4 of 2011 – 12. while this is a positive development, it has come about as imports contracted in face of growth slowdown and some benefits accrued from exchange rate pass - through from rupee depreciation in 2011 – 12 and in the first quarter this year. macroeconomic and external sector policies would need to still factor in external sector risks in the coming period, especially as event risks emanating from global developments remain significant. therefore, further efforts would be necessary to contain cad and bring it in line with its sustainable level of around 2. 5 per cent of gdp. the recent reform measures have brought about major change in global investor perception. these investors are now willing to continue investing in india ’ s long - term growth story. another silver lining is that india ’ s net international investment position ( niip )