Select Page

Private sector credit declines

Sighting the latest Bank of Namibia’s money and banking statistics, Simonis Storm Securities says total private sector credit extension declined slightly during September to 11.2% year-on-year . However, on a monthly basis, total credit extended grew 0.4%.
The decline came from the corporate sector as well as individuals, which both grew at a slower pace than in August. Credit extended to businesses declined to 13.5% from 14.3% in August, while individual credit growth declined to 9.9% growth from 10.4% in August.
Business overdrafts contracted for the second time in three months and were 3.6% lower than in September 2010, while individual overdrafts slowed to 3.6% growth from 7.3% in August. Strong growth in mortgage loans however partially offset the slower overdraft growth as mortgage loans to individuals increased to 10.9% and mortgage loans to businesses increased to 31.6%.
The Bank of Namibia’s foreign reserves declined further in September by 8% annually and 4.6% on a monthly basis. The government’s cash at the central bank decreased by a further N$703 million to N$3.6 billion. Domestic government debt continued to accelerate during October, increasing 62.5% year-on-year to N$15.1billion. Of all government debt, 49.1% of debt has a maturity of less than 12 months.

About The Author


Rain Rate >UTC + 2 hrs = Namibian Time<