In this set-up, in which there is a multiplicity of actors, certain rules are indispensable. Rules provide a clear allocation of responsibilities and thereby set appropriate incentives. If they are abided by, these rules create an efficient co-ordination device for budgetary policies within the euro area.
This increase is rather impressive, especially when compared to SME lending in other SubSaharan African economies like Nigeria (SME lending is 5 percent), South Africa (8 percent), Rwanda (17 percent) and Tanzania (14 percent). However a lot more needs to be done to address the long-standing constraint of financing of MSMEs.