However, I will hasten to add that the Bank judges that the pace of recovery is highly likely to be only moderate. Given that the global adjustments of balance sheets will continue, it is hard to assume a marked and rapid recovery in exports.
What are the causes of the rise in NPLs in the banking system? There are macroeconomic, sectoral and a variety of idiosyncratic factors which have contributed to the problems. On the macroeconomic front, the rise in interest rates in 2015, which was necessitated by inflationary pressures, combined with exchange rate volatility increased the stress on borrowers.