At home and abroad, the government is running out of options to borrow. Within the country, the government’s borrowing cost is over 15 percent. The high rate of borrowing at home is exhausting the banking sector’s limits. As the cost of credit grows, the private sector finds it may no longer be in the market.
Externally, major lenders would not oblige until they have the IMF’s assurance. To get IMF support means more pain for citizens and a high political cost for the government.
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