Let us take, for example, the annual growth rates of credit in BH in 2006, 2007 and the first half of 2008. Just before the Global Financial Crisis (GFC), loans to private sector were growing at the rate higher than 30 per cent annually.
Although it was viewed as a sign of overheating, the policy makers also considered factors such as low initial levels of lending. Today, such accelerated credit growth would be considered a serious vulnerability. Similarly, the path of the accession towards the EU is bringing structural changes to a candidate country’s economy.