enhance ppp standards, and improve project governance and delivery. a number of international and regional efforts have been made on this front, including but not limited to the establishment of the global infrastructure hub by g20, the launch of the global infrastructure facility by world bank, and the setting up of the new asian infrastructure investment bank focusing on promoting infrastructure development in the region. to contribute to the concerted efforts by the international community, the hong kong sar government has recently asked the hong kong monetary authority to establish an infrastructure financing facilitation office ( iffo ). as its name suggests, iffo aims to provide a platform to bring together key stakeholders, including developing countries, multilateral development banks, potential investors and financiers ( e. g. private equity funds, sovereign wealth funds, banks etc ), project developers such as corporations capable of developing and operating large - scale infrastructure, and professional service providers. through information exchange, experience sharing and capacity building, we hope to facilitate more efficient and sustainable infrastructure investment flows to developing asia. bis central bankers ’ speeches iffo will seek to collaborate with other development partners in the region and so far we have received support from a number of them including adb. if everything goes smoothly, iffo will be formally inaugurated this summer. as an international financial and business center in the region, hong kong, china has long been playing an active role in supporting infrastructure financing in asia. by leveraging on our unique position as an ifc, we hope the iffo initiative will help mobilise private sector financing and bridge the gap between investors and viable projects. we look forward to working closely with our partners in this process. thank you. bis central bankers ’ speeches

philipp m hildebrand : developing countries and international capital markets summary of a speech by mr philipp m hildebrand, member of the governing board of the swiss national bank, to economiesuisse, zurich, 14 june 2005. the complete speech can be found in german on the swiss national bank ’ s website ( www. snb. ch ). * * * after having plummeted on the back of the asian crisis, capital flows to developing countries have risen considerably again in the last three years. in 2005, they are likely to reach the approximate level at which they stood shortly before the asian crisis. capital flows are channelled mostly to a few emerging markets, notably china. china ’ s monetary order is currently undergoing profound changes, with the country gradually liberalising capital movements. the concept of the “ impossible trinity ”, which was developed by the nobel prize winner robert mundell, asserts that this will inevitably lead either to a loss in monetary autonomy or to a flexibilisation of the exchange rate regime. both trends can be clearly observed : the pressure on the fixed exchange rate on the one hand, and the rapid expansion of the monetary and credit aggregates on the other. in the longer term, china ’ s monetary order will probably move towards floating exchange rates. this transition will hopefully be successful. as china ’ s monetary policy of gradual change has so far proved its worth, it is likely to serve as an example to other developing countries.