Foreign reserves increases to N$30 billion
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01 February 2019
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The stock of international reserves held by the Bank of Namibia (BoN) rose by 4.7 percent on a month-on-month basis to N$30.9 billion at the end of December, the central bank announced this week.
The monthly increase in reserves was partly on account of the disbursement of the second tranche of the AfDB loan in December.
BoN also said the liquidity position of commercial banks rose to N$2.8 billion in December from N$2.3 billion at the end of November.
“The position slightly improved due to increased foreign currency inflows, for corporate tax payments to the State in December,”a report from the central bank showed.
The annual growth in mortgage credit extended to the private sector moderated to 6.5 percent from 6.6 percent at the end of the preceding month.
“The meagre decrease mainly emanated from a declining uptake of property loans by the household sector during the month under review.”
Instalment sales contracted by 0.2 percentage point to 7.7 percent compared to a month earlier.
The apex bank said the persistent sluggish growth observed in instalment sales is in line with the deteriorating developments observed in the wholesale and retail sector specifically in the number of vehicles sold during 2018 and further aggravated by the 2016 amendment to the Credit Agreement Act.
The annual growth in other loans and advances slowed for a second month in a row to 21.6 percent at the end of December. The slower growth was underpinned by decreases in volumes of borrowed funds over the year to date by both the household and business sectors.
The annual growth in overdraft credit slowed significantly to 10 percent in December, decreasing by 3.7 percentage points month-on-month compared to the preceding month. The decline was due to repayments made by the business sector during the review period.
Total credit extended to the household sector stood at 6.9 percent during December, slightly lower than the 7 percent at the end of the preceding month.
The report showed that slower growth in credit extended to the household sector was mainly underpinned by the subdued growth in mortgage loans as well as other loans and advances during the month under review.
The annual growth in credit extended to businesses stood at 6.5 percent at the end of December, compared to 7.6 percent at the end of the preceding month.
The report said the subdued growth stemmed from repayments made by corporations on their short-term credit facilities
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