BoN pays 9.7m in dividend

27 Mar 2014 18:00

Bank of Namibia (BoN) has contributed N$ 9.7m to state coffers for the 2014/15 fiscal year, a decline from the N$25m paid in last year.

Central Bank governor Ipumbu Shiimi in a statement accompanying its annual report attributed the decline to the global economy uncertainty coupled with a low interest rates environment.

Shiimi also said that the domestic economy has slowed marginally to 4.3% in 2013 compared to five per cent in 2012.

The growth in 2013 is ascribed to the construction sector along with large private sector projects in the mining sector and business facilities, coupled with a large public works programmes.

On the other hand, in 2013, the Namibian dollar weakened against major currencies emanated from the negative sentiments that arose from labour unrests in South Africa.

However, he said the banking sector remained sound, profitable and well capitalised as all banking institutions reported capital in excess of minimum regulatory requirements, and conforming to all regulatory limits.

During the year under review, the bank continued to fulfil its role as an advisor to the Government by providing policy advice on economic and fiscal issues.

Amongst the activities undertaken during the year were the issuances of standards for free cash deposit fees for individuals and SMEs, the formulation of regulations for credit bureaus and the launch of the code of good banking Practice and guidelines for Lodging Complaints to BoN.

While, the South African Reserve Bank decided today to keep its interest rates unchanged at 5.50%  , the Governor notes that at this point, it is too early to predict  whether they are going to keep the interest rates unchanged or not in the next Monetary Policy Committee to be held next month.