ABSTRACT
It is clear that access to finance from financial institutions and the capital market will only become easier when the cost of borrowing and lending is lowered, and the financial strength of private firms improves. The mix of equity and credit will change as ownership structures, risk, firm size, legal and regulatory systems, and government policy change. While the financial system needs to develop products to meet the private sector’s increasing demand for finance, policy changes are also needed-for instance, constraints on the types of business private enterprises can operate are limiting their growth and capacity to raise funds.
