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These elements of the supply of finance to banks aid in explaining why rates of growth in Egypt were intensified and relatively high in the first half of 1990s, but decelerated at the end of the decade.
Macroeconomic stabilization stopped the expansion of banking credit to the government, This sudden action allowed the banking system to have additional resources and lending it to the private sector. Private sector had additional finance so this led to increase in the economic growth rate, but at the same time as a result of inadequate estimation of the capacity of the banking system plus the ongoing process of credit allocation, the quality of lending money was poor...
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