New credit must now go to dynamic outward-looking enterprises with growth prospects. In other words, the limited liquidity available should be channelled into the real economy in a way that maximises its growth potential. It is pointless, and even dangerous, to let weak, non-viable businesses and saturated sectors to continue operating as usual.
An arsenal to manage the risks Indeed, the economy performed well in 2016 even amidst evolving economic and financial conditions. But having strong fundamentals is just the first step, we also need to implement the structural reforms already in the pipeline, including capital markets reforms, to unleash further productivity and enhance the efficiency of intermediation.