Namibians borrowing less money: BoN

14 Jun 2017 17:40pm
WINDHOEK, 14 JUN (NAMPA) – The private sector credit extension (PSCE) slowed down during the first four months of 2017 to 8,6 per cent from 13,0 per cent recorded during the same period last year.
During the bi-monthly Monetary Policy announcement on Wednesday, Bank of Namibia (BoN) Governor Ipumbu Shiimi said since the last Monetary Policy Committee (MPC) meeting, the growth in PSCE slowed to 8,1 per cent at the end of April from 9,1 per cent at the end of February.
The slow growth was visible in credit advanced to both the corporate and household sectors, especially in the subcategories of mortgage and instalment credit, said Shiimi.
He also indicated that as of 01 June, the preliminary stock of Namibia’s international reserves stood at N.dollars 24,2 billion, representing an increase on a monthly and annual basis.
The increase was attributed largely to local institutional investors, such as pension funds and long-term insurance companies that decided to liquidate some of their foreign investments to invest in the domestic economy.
“At this level, the stock of international reserves is estimated to cover 3,7 months of imports of goods and services, and thereby remains sufficient to sustain the currency peg between the Namibian Dollar and South African Rand.”
Shiimi noted that Namibia’s import bill has also reduced, while more local institutions are investing in the domestic economy and Government expenditure has decreased; all good things for the country’s economy.