Unproductive debt of N$16b

For two years running, personal loans and credit-card debt have grown alarmingly.

02 January 2019 | Economics

Namibians are increasingly relying on credit cards and personal loans and by the end of November 2018 this debt totalled N$6.3 billion.

That is almost N$1.3 billion more than in 2017.

Moreover, overdrafts on personal accounts stood at N$3.1 billion and instalment debt at N$6.7 billion at the end of November last year.

According to the latest figures released by the Bank of Namibia (BoN) “other loans and advances” from banks, which include credit-card debt and personal loans, was 19.6% higher at the end of November than at the same time in 2017. Year on year, this is the highest growth in debt since May 2017.

Personal loans and credit-card debt have been growing in double figures for two years. Up to the end of November, consumers' debt had increased by N$88 million every month.

During November, consumers racked up N$128.7 million in credit-card debt and personal loans: the third highest for 2018. The highest debt levels were recorded in August 2018 (N$201.1 million), followed by N$162.4 million in July 2018.



Other debts

The rate at which overdrawn accounts and instalment debt are growing is not yet alarming. Compared to November 2017, the total overdrawn account debt stood at N$26.7 million, or, 0.9% higher, in November 2018.

After measures implemented by the BoN, including compulsory deposits and shorter repayment periods on vehicle purchases, instalment debt has dropped. At the end of November 2018, this debt stood at N$491 million, 6.8% lower than in November 2017.

Home loans, considered as productive debt by the central bank, stood at N$38.3 billion in November 2018, roughly N$2.5 billion or 6.9% more than in November 2017.

In total, Namibian consumers owed commercial banks N$56.3 billion at the end of November 2018, almost N$3.3 billion or 6.1% more than in November 2017.

The latest figures available from Namfisa indicate that registered micro-lenders were owed N$5.6 billion in March 2018 - N$1.2 billion or 27% more than in March 2017.

The financial stability report of the BoN, published in April 2018, indicates that consumers spend N$83.30 out of every N$100 of disposable income on paying their debts.

Both the central bank and the International Monetary Fund have expressed concern over the Namibian consumer's debt burden.

JO-MARE DUDDY

Similar News

 

World's top companies urge green action

1 day - 22 September 2020 | Economics

Simon Jessop - Some of the world's biggest companies yesterday backed growing calls for governments to do more to reverse the accelerating destruction of the...

Majority women still in running to head WTO

1 day - 22 September 2020 | Economics

Geneva - Three women - two Africans and a South Korean - were among the five candidates still in the running to take the helm...

WeChat, TikTok ban is test for open internet

1 day - 22 September 2020 | Economics

Rob Lever - The US ban on Chinese-owned apps WeChat and TikTok sets up a pivotal legal challenge on digital free expression with important ramifications...

!Gawaxab on his first 100 days

5 days ago - 18 September 2020 | Economics

PHILLEPUS UUSIKU - Even before the coronavirus crisis, Namibia’s economy was contracting, unemployment was high and fiscal space severely constrained if not exhausted, creating an...

Government support business sector

6 days ago - 17 September 2020 | Economics

Government has paid out N$ 3.8 billion for outstanding invoices and value-added tax in support of the business sector including small and medium enterprises (SMEs)...

Whk informal settlements don’t have capacity

6 days ago - 17 September 2020 | Economics

Windhoek mayor Fransina Kahungu said unplanned informal settlements in Windhoek will be declared reception areas that will be decongested in order to reduce the spread...

Namibia's investment risk increases - report

6 days ago - 17 September 2020 | Economics

ELLANIE SMITWINDHOEKThe risk of investing in Namibia has been increasing, while rewards have been declining, according to a new investment report. The coronavirus pandemic...

Policy void fuels poverty

1 week ago - 16 September 2020 | Economics

JM Kretschmer - The Namibian government has of late come under increased pressure from all sectors of society, and in a key turn of events...

August inflation a bitter fruit

1 week ago - 16 September 2020 | Economics

Although annual overall inflation of 2.4% last month was below the 3.7% of a year ago, overall food inflation is starting to heat up. According...

Hobbling SA govt relief package

1 week ago - 16 September 2020 | Economics

Emma Rumney and Alexander Winning - South Africa's National Treasury plans no further easing of its coronavirus loan scheme criteria to stimulate uptake, it told...

Latest News

The evil that men do

9 hours ago | Crime

JEMIMA BEUKESREHOBOTH The mother of two-week-old Charmaine Moss, who died after allegedly being raped by her father, has revealed shocking details about what had transpired...

Death of football further divides...

9 hours ago | Opinion

At the time when Namibians are angry at so many things – Covid-19, high unemployment rates and general levels of poverty – sport is the...

IPC dissident opens case against...

9 hours ago | Politics

JEMIMA BEUKES WINDHOEK Independent Patriots for Change (IPC) outcast Henry Ngenomesho has opened a case of assault by threat against party president Dr...

Antipsychotic drugs back in stock

9 hours ago | Health

TUYEIMO HAIDULA OSHAKATI After being out of stock for six months, the country has finally received antipsychotic and antidepressant medication....

Meatco works towards inclusivity

9 hours ago | Agriculture

STAFF REPORTERWINDHOEKMeatco hosted a stakeholder engagement meeting with mainly weekend farmers and members of the Namibia Emerging Commercial Farmers Union (NECFU) last week.These farmers are...

Meat industry players meet

9 hours ago | Agriculture

STAFF REPORTERWINDHOEKThe Meatco board last week paid a courtesy visit to the Meat Board of Namibia to discuss how to address crucial matters hampering the...

Breaking the stigma of dementia

9 hours ago | Health

ERWIN LEUSCHNERSWAKOPMUNDSwakopmund's Alzheimer Dementia Namibia (ADN) Centre is the only one of its kind in the country. Here around two dozen people are cared for...

Horrendous abortion

9 hours ago | Opinion

Modestus H We cannot live in the present without the past; we have to link them together. In the past, abortion was not as...

A seatbelt can save your...

9 hours ago | Opinion

FABIAN AMUKWELELEIn highly motorised countries, many deaths have been prevented by seatbelts. Yet, seatbelt compliance remains worryingly low in those countries, including Namibia, where vehicle...

Load More