Staff Reporter Windhoek-At N$87.945 billion, total Private Sector Credit Extension (PSCE) annual growth marginally ticked upward to 8.2 percent in May 2017 from 8.0 percent the previous month. The three-month moving average remained unchanged at a series low of 8.7 percent while monthly growth in PSCE increased 0.7 percent following a marginal 0.1 percent rise in April. According to the latest figures from the Bank of Namibia (BoN) the pace of growth in individual credit (+8.5 percent year-on-year to N$51.1 billion) slowed, rising by 0.4 percent month-on-month after increasing 0.5 percent in April, while the N$36.3 billion credit extended to businesses led the upside rebounding to 0.7 percent month-on-month and 8.4 percent year-on-year. Commercial banks’ overall liquidity position jumped to N$3.3 billion at end May 2017 from N$1.8 billion at the end of April 2017. BoN attributes the substantial increase to diamond sales and the Government Institutions Pension Fund’s acquisition of a stake in Capricorn Investment Holdings. The three-month moving average growth in credit extended to individuals fell to +8.7 percent in May from +8.9 percent in April 2017. The annual slowdown was led by mortgages and instalment credit, while overdrafts accelerated +2.3% month-on-month and +13.9 percent year-on-year to N$3.1bn. Meanwhile, monthly growth in business mortgages recovered to +1.2 percent month-on-month (but eased to +4.8 percent year-on-yeary/y) at N$10.8 billion, instalment credit fell -0.7 percent month-on-month and -1 percent year-on-year to N$4.959 billion, as other loans and advances fell -0.9 percent on the month and hastened to +11.4 percent year-on-year from +9.2 percent year-on-year in April. The three-month moving average growth in credit extended to businesses slipped minimally to +8.4 percent from +8.5 percent in April.
New Era Reporter
2017-07-13 12:23:45 1 years ago