This policy note underlines the fact that despite the government’s substantial commitment to supporting the private sector and SMEs, financing granted in the last decade has plateaued at roughly 64 to 68 percent of GDP. This is because there are still a number of constraints on the smooth functioning of the SME financing system. These constraints are largely microeconomic in nature. Recommendations provided in this policy note are at a strategic level and indicate the broad type of measures to be implemented in order to face the constraints underlined in this paper.

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