Private sector credit increases by just 1% in 2021
In 2021, private sector credit increased by just 1% to N$1.05 billion over 12 months, following an already slow increase of 1.6% in 2020.
This is according to the Bank of Namibia’s, which indicates that of this N$1.05 billion, individuals took up N$1.27 billion, while corporates reduced their borrowings by N$48.5 million and the non-resident private sector repaid N$173.3 million of their borrowings.
On a year-on-year basis, credit extended to individuals rose by 2.1% in December 2021. Overdraft facilities to individuals declined 3.3% on an annual basis. Other loans and advances (consisting of credit card debt, personal- and term loans) rose by 0.2% and 2.8% yearly. Growth in mortgage loans to individuals has been slowing since April 2021, but increasing by 2.6% yearly.
On both a monthly and annual basis credit extended to corporates contracted for a second consecutive month, decreasing by 0.11% yearly, as corporates continued to de-lever their balance sheets in 2021.
Overdrafts in corporates declined by 13.1% yearly, while mortgage loans to corporates rose by 5.8%. Instalment credit growth remained subdued increasing by 5.6%, although it is from a very low base. Other loans and advances rose by 3.1% as of December 2021.
