Private Sector Gearing Up

BMI View: Gross external debt has risen sharply over the past few years. Large-scale borrowing in the commercial banking sector and private companies more than offsets the decline in the governments' foreign obligations. Rapid financial deepening is a crucial aspect of a transition economy, and with huge sums of hard currency flowing into the country, we do not currently consider the risks to stability to be especially severe.

To read the full article, please choose one of the following options: