Private sector credit slows to 1.8% in January
Private sector credit growth slowed to 1.8% in January 2021 decreasing by 0.2%, the Bank of Namibia indicated.
This decline stemmed from lower demand for credit extended to households during the period under review.
The 12-month growth in credit extended to households slowed to 2.5% at the end of January 2021, from 4.5% at the end of December 2020. The decline stemmed from a lower uptake of credit in all credit categories with a notable decrease in mortgage credit coupled with net repayments made during the period under review
Nevertheless, growth in private sector credit was sustained by a marginal increase in credit extended to businesses.
Credit extended to businesses recorded an uptick of 1% at the end of January 2021, a turnaround compared to a contraction of 1.2% a month earlier. The rise in credit extended to businesses stemmed from an increase in overdraft credit extended to corporations in the mining, retail and manufacturing services sectors.
Overall, growth in private sector credit extension remains extremely subdued and was very much in line with the growth seen in December on a year-on-year basis, increasing by 1.5%. Rolling 12-month issuance is down 77% to N$1.56 billion as at the end of January, with individuals taking up most (92.6%) of the credit extended over the past 12 months.