Nevertheless, maintaining macroeconomic and financial stability during the growth process will remain a challenging task. A smooth process of catch up growth depends critically on higher growth and income being realised in a sustainable way, . that the debt and credits can be serviced without major demand adjustment. The lower interest rate is likely to be beneficial for investment, but at the same time may challenge the capacity of the financial system to choose and monitor the most efficient investment projects. Financial supervision is all the more important given that foreign owned banks dominate the financial markets of the.
