We continue to expect them to remain at their present levels at least through the summer of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term.
Consequently, most of the loans were approved to favour individuals and firms connected with the ruling party. This state of affairs had led to large accumulated losses, huge non performing loans and weak governance. As almost all the NCBs except one have been privatized, this linkage between the Government and the financial sector has been severed.