Addressing both issues is crucial to enhance the functioning of the Maastricht framework, which is – as it has to be recalled from time to time – still the legal foundation of the monetary union. Last but not least, Hans-Werner Sinn unquestionably deserves special acclaim for pointing the public’s attention on the impact of central banks’ crisis measures.
The problems with regard to this segment have been widely documented: these include constraints on timely credit availability, its high cost, neglect of small farmers and continued presence of informal lenders. It is argued that most part of the cooperative credit structure is multi-layered, undercapitalised, over-staffed and underskilled, often with high level of delinquent loans.