•
High inflation rates for a long-time,
•
High public borrowing requirements leading to high
borrowing costs (characterised by soaring real interest
rates, very short maturity periods) and crowding-out
of private sector direct investments,
•
Lack of fiscal discipline in the public sector,
•
Lack of transparency and accountability in the public
sector,
•
Serious structural problems in a wide range of economic
sectors such as banking,
•
Dominance of the public sector, which was inefficient
and had structural problems, in most of the economic
sectors,
•
Instable political environment,
•
Severe economic recessions in 1994, 1999 when a big
earthquake occurred, and 2001 when the worst financial
(banking) crisis occurred,
•
Lack of the Central Bank independence by year 2001,
•
Economic instability and highly volatile environment.
