This is because the U.S. economy is expected to continue growing at a moderate pace, and the growth rate of the Chinese economy – one of the main emerging and commodity-exporting economies – is expected to stop decelerating, with the economy likely heading toward a recovery due to the fine-tuning of the current set of restrictive policies.
The single most important element in a revised lending strategy would be a restrictive exceptional access policy stringently conditioned on acute needs and debt sustainability. Exceptional access must be reserved for only a few true emergency cases. Lending criteria need to be applied without exception.