The conventional paradigm of relationship finance is based on the premise that small businesses and households tend to be informationally opaque – an economist’s term that may be even more opaque than these small businesses and households. What I mean by this phrase is that “hard” systematic data about the creditworthiness of such potential borrowers tend to be quite difficult to obtain.
Foreign direct investments (FDIs) in the last two (2) years have also lent support to the country’s external account along with rising investor confidence. Meanwhile, after falling by 1.8 percent, year-on-year in 2018 exports begun to recover slightly, edging up to $ billion in the first seven (7) months in 2019. July itself marked the fourth straight month of export growth at 3.5 percent.