The program of budget restraint and reduction of the quasi-fiscal losses, supported by the IMF's Stand-By Arrangement, was successful in bringing domestic demand down to sustainable levels, lowering inflation, and narrowing the current account deficit. The stabilization effort was supported by the fiscal policy. A sensitivity analysis is used to assess banking sector vulnerabilities. The Deposit Guarantee Fund (DGF) is operating satisfactorily but will need to strengthen its resources considerably to provide a sufficient level of support. The insurance sector is small and underdeveloped.