First, these markets typically involve a large number of low ticket clients/transactions with commensurate burden on operating costs. Second, these segments are typically associated with informational inefficiencies with most borrowers unable to produce any collateral or to provide an adequate track record of repayments.
As a consequence, government had BIS central bankers’ speeches  1  to ration scarce foreign exchange by prioritizing importation of critical commodities such as oil, medicines, and dairy products. The credit squeeze also pushed domestic interest rates higher, with housing loans going for over 30%. It was during this period when many Filipinos went overseas to find better opportunities.