##ed policy efforts in all economies, especially the large ones, are necessary so that world trade can be revitalised and financial capital flows stabilised. this will help support the emerging market economies and global growth. the policy strategies pursued need not be identical across countries and regions and the required size of the economic stimulus and the nature of the other measures taken need not – and should not – be the same, as structural and conjunctural conditions differ. nevertheless, a similar orientation and consistency is warranted. see international monetary fund, global financial stability report market update, 28 january 2009, p. 2. based on data available up for january 2009. since the intensification of the financial crisis in september 2008, central banks and governments globally have acted in a decisive and concerted manner to contain the adverse effect of the financial crisis on the real economy and promote its recovery. in the euro area, the actions taken by the ecb and the eurosystem are unprecedented in size and scope. government support for financial institutions in the form of recapitalisations, guarantees on bank debt and, more recently, asset relief schemes, have been significant and the pertinent measures are progressively being implemented. and the fiscal stimulus packages of euro area governments are substantial, amounting to a total of about 2 % of euro area gdp over this year and the next. the immediate priority of macroeconomic policies and bank support schemes is to promote the economy ’ s recovery and preserve price and financial stability. yet, a fundamental policy objective should be that the recovery of activity and the repair of the financial system have to be achieved in a manner that will ensure a sustained growth performance and will prevent the recurrence of episodes of financial imbalances and market excesses that can threaten again financial stability and economic welfare. put differently, it is important that the policies and reforms pursued today lay the foundations for sustained growth. let me now elaborate on these issues by focusing on the role and contribution of central bank policy and of financial system reform. central bank policy the ecb ’ s monetary policy and provision of liquidity have played a key role in containing the downside risks to price stability, supporting economic activity and stabilising the financial system. the extent of the monetary policy easing since last october has been unprecedented, with key ecb policy interest rates having been reduced by 275 basis points. at the same time, money market rates have declined even more from the peaks reached in october 2008 as a result of the

sector may arise especially from liquidity mismatch and leverage, which could adversely affect market conditions should risks materialise. priority should be given to policies that help build resilience by reducing liquidity mismatch, mitigating risk from non - bank financial sector leverage, and enhancing liquidity preparedness in the broader non - bank financial sector. international support for ukraine and most vulnerable countries we welcome the imf's continued support for ukraine, including the recently approved fully fledged lending arrangement. together with strong international support, the arrangement will be essential for addressing ukraine's immediate financial needs and in catalysing additional financial assistance. we note that all adjustments to the imf's lending policies and toolkit are uniformly applicable to those meeting the relevant criteria from the fund's broad membership. in view of rising debt vulnerabilities, support for vulnerable countries remains high on the international agenda. we welcome the first successful conclusion of debt restructuring under the g20 - paris club common framework last year and encourage debt treatments of other applicant countries to be finalised promptly. efficient creditor coordination and debt transparency remain key. we note strong demand for resilience and sustainability trust ( rst ) financing, following its successful launch in late 2022, and welcome the good progress achieved. initiatives to ensure the resource adequacy of the rst and the poverty reduction and growth trust should maintain the reserve asset character of claims on the loan and deposit accounts of these trusts. this is essential for contributions made by eu national 3 / 4 bis - central bankers'speeches central banks. however, we note that the channelling of special drawing rights by eu national central banks to multilateral development banks or individual countries would not be compatible with the eu's legal framework. supporting international cooperation and strengthening the global economy recent global shocks and geopolitical tensions have advanced the debate about reconfiguring global supply chains. while the increased resilience associated with less complex supply chains is desirable, a less integrated world economy also entails costs. it weakens the diversification of global production and, in particular, the efficient allocation of resources globally, which has an adverse impact on welfare across the world. geopolitical fragmentation may also affect the global economy via financial channels. the availability of external financing may be impeded, and lower foreign direct investment would hinder the diffusion of technology and thus productivity growth. all of these developments require our immediate attention ; however, we are not losing sight