To ensure sustained higher growth, reforms are needed to remove any obstacles to development, foster innovation and help modernize the productive system. Acting in isolation, monetary policy can do nothing but continue along the path of ‘non-standard’ measures. This increases the risk of adverse side effects, which, in turn, need to be kept under control using instruments of an increasingly administrative nature.
You may recall that we had announced earlier this year our intention to reduce the local borrowing allowed by non-resident companies and individuals beginning from next year. We have received many feedbacks on this exchange control policy. As a result, we have reviewed this policy. We acknowledge that some companies may face difficulty in borrowing money from abroad.