It should be noted however, that in recent years, monetary policy has actually been very effective in improving overall financial conditions, which has been an instrumental factor in the balance sheet repair of households and firms and consequently, the improving health of the financial sector. Furthermore, debt reduction is facilitated by a growing economy, with the latter benefiting directly from our policy response.
The main disadvantage is that the private developer’s capital cost is higher than that of the government. It is important that a government unit be established that will specialize in the management and monitoring of PPP tenders and contracts. It will require specific know-how and expertise in tenders and contracts.