Banking Sector Reform Program

The program's approach to dealing with nonperforming loans (NPLs) might have concentrated more fruitfully on strengthening credit assessment with a focus on future cash flows rather than security, through greater support for the development of needed procedures and capacity in this regard. Attempting concurrent reforms of a fundamental nature in the legal and judicial system requires a significant commitment of resources over the medium to long term, well beyond those available under the program and its associated TA.