This is an important issue not just for the SEE countries but elsewhere as well, especially in the context of increasing budget deficits and diminishing growth rates in many countries. What is sometimes forgotten in SEE is that a solid basis for loan qualification is and should be exclusively past and expected fully declared net-income both for companies and for individuals.
This can be vital information for loan approval and interest rate pricing. By increasing financial literacy of potential financial products consumers in this area, we can significantly influence the decrease of so called “gray economy” with a positive impact on tax collection, budget deficit and accuracy of economic data in the system, and therefore, future efficiency of economic policies.