In particular, one of the main channels through which financial developments can have a feedback effect on the macro economy is through the capacity of banks to lend to the economy, the so-called “balance sheet channel”. The reduction in NPLs can weigh positively on the supply of credit by unlocking bank capital and funding for the financing of productive companies.
This year total formal emploуment is by 59 thousand people higher than in February last year, and the rise is led by private sector employment (58 thousand people).