Don’t feed the zombies
There can be no growth without resolving the issue of nonperforming business loans. However, the solution to this problem should not be based on old establishment criteria, such as political and other connections. The economy – in other words the market’s sustainable and healthy company sector – is in desperate need of oxygen. Businessmen who stood by their companies must be reinforced, as opposed to those who looted their businesses and have kept their accumulated assets abroad.
If the very little money that local banks are able to hand out ends up going to the zombies, the real economy will be dealt a disastrous blow.
The proposals tabled by the Development Ministry are in the right direction. What is crucial at this point is for the procedure to begin swiftly and for the agreed rules to be observed without exception.