By Mbatjiua Ngavirue WINDHOEK Bank Windhoek has weighed in on the debate surrounding the current high level of borrowing and personal debt in Namibia. Experts have attributed the financial stress that many people suffer because of excessive debt to irresponsible behaviour by both consumers and lenders. Consumers are accused of having thrown caution to the wind and embarked on a reckless spending binge, while lenders are accused of making credit easily available. In response to an inquiry, Bank Windhoek Managing Director James Hill said the bank has always taken a very responsible view of extending credit to its customers. He confirmed information from the Namibia Financial Institutions Supervisory Authority that although there are no statistics or data on levels of indebtedness, there appeared to be a definite increase in personal debt levels. Hill says Bank Windhoek expects a further hike in interest rates in either February or April this year, following the half percent increase announced by the Bank of Namibia in December 2006. “It is therefore imperative for clients to be prepared for the impact thereof on their cash flow budgets,” he warned. In defence of the banks, he noted that banks are not the only institutions offering credit. According to Hill, a number of retailers and quick-loan companies offer clients credit, sometimes without taking into consideration the existing indebtedness of clients and often at very high interest rates. “Consumers are tempted by unsolicited offers for credit, and credit has become too easily accessible. “A tightening in the control of credit extension in Namibia is definitely desirable. Bank Windhoek therefore supports initiatives to create a National Credit Act for Namibia,” he remarked. The Bank Windhoek MD suggested consumers with debt should look for ways to consolidate their debt. One way they could do this is through BW Finance (Pty) Ltd, a micro-financing unit part of Capricorn Investment Holdings (Bank Windhoek’s holding company). BW Finance (Pty) Ltd offers micro-loans to assist clients with small loans at various institutions to consolidate their debt into one loan.