Loans to individuals, businesses up N$750m

Loans made out to individuals in the form of mortgages, overdrafts and instalment credit, amongst others, as well as loans made out to businesses, rose by N$751 million just for the month of November 2018, IJG Securities said in a recent report. On a year-on-year basis (2017 to 2018), total private sector credit extension (PSCE) grew by almost 8% in November compared to 7.8% year-on-year in October IJG noted. “November has also been the fourth consecutive month in which PSCE growth has kept raising on a year-on-year basis. Cumulative private sector credit outstanding as at the end of November amounted to N$96.645 billion,” IJG said.IJG also found that on an annual basis, households were taking up much of the credit extended to the private sector in 2018, accounting for almost two-thirds of the uptake. However, that wide disproportion between credit extended to households and corporations began to narrow in August. On a rolling 12-month basis N$7.1 billion worth of credit was extended to the private sector with N$3.26 billion being taken up by households. Corporations very nearly equalled that which was extended to households by taking up N$3.21 billion worth of the credit over the last 12 months, while claims on non-residents totalled N$663.2 million. In terms of credit extended to corporates and businesses, this increased by 8.9% year-on-year compared to October's 7.1% year-on-year increase IJG noted. “The November increase in corporate credit has been the highest since March 2017 and the fifth consecutive month in which corporate credit has been increasing at a faster pace on a year-on-year basis. Shorter-term credit facilities continue to be driving the increase in corporate credit extension,” IJG said. Overall PSCE growth in November maintained its upward momentum on a year-on-year basis for a fourth consecutive month, increasing by 7.96% year-on-year IJG noted, which it said was the highest rate of growth in the last 18 months.In the midst of recessionary economic growth short-term and unsecured loans have grown at a quicker rate than that of mortgage and instalment credit, IJG said.OGONE TLHAGE

Loans to individuals, businesses up N$750m

Comments

Namibian Sun 2025-09-19

Please login to leave a comment

Loans to individuals, businesses up N$750m

Comments

Namibian Sun 2025-09-19

Please login to leave a comment

Login