The Unassuming Economist

The IMF’s latest report on Bolivia says:

“Credit quotas should be relaxed to limit poor-quality credit growth. Interest caps should also be removed so that lending decisions better reflect intrinsic risks. This would remove distortions in the allocation of credit and support desirable allocation of resources in support of growth. ASFI is urged to monitor closely capital quality for its ability to absorb potential shocks and to scrutinize possible risks arising from rapid credit growth to housing. In this context, the Fund welcomes the opportunity to assist the authorities to prepare a real estate price index and urges rapid progress.”