BoN dividend to State decreases

31 Mar 2016 16:40pm
WINDHOEK, 31 MAR (NAMPA) – The Bank of Namibia (BoN) Thursday handed over a dividend amounting to N.dollars 76.5 million to the State for the 2015/16 financial year; less than the year before.
BoN Deputy Governor Ebson Uanguta handed over the dividend to the Ministry of Finance during the launch of the bank's 2015 Annual Financial Report.
Uanguata said this dividend is very low compared to the 2014/15 financial year’s dividend of N.dollars 158.1 million, saying it is due to the volatile global financial market.
“This is mainly due to the uncertain and volatile global capital and money markets where the bank drives its investment returns.”
Uanguta explained that the global economic growth was weaker in 2015 due to the fragile economic activities in the key emerging markets and developing economies.
He noted that global growth is estimated at 3,1 per cent in 2015, lower than 3,4 per cent in 2014 and is expected to be at 3,4 per cent in 2016 as commodity prices are expected to stabilise.
Uanguta then committed the bank's continuation to advise Government on fiscal and other economic issues.
Meanwhile, Deputy Permanent Secretary in the Ministry of Finance Titus Ndove applauded the central bank for their contribution to the State coffers, despite the global financial conditions experienced last year.
“We are happy with the BoN and calling on other State Owned Enterprises (SOEs) to follow their example.”
BoN was established by the Bank of Namibia Act, 1990 (Act 8 of 1990) to issue the Namibian dollar by authority given to it under an Act of the Namibian Parliament.