Ndama Nakashole - The total credit extended to the private sector realised a monthly increase of N$347.9 million in January 2018, the latest Money and Banking statistics released by the Bank of Namibia (BoN) reveal.
Data reveal that total private-sector credit rose to N$90.25 billion in January 2018 from the N$89.9 billion recorded in December 2017.
On an annual basis, January saw an increase of N$4.8 billion during the month under review from a total PSCE amount of N$85.4 billion recorded in January 2017. This represents an annual increase of 5.7% and shows that there was a 0.6 percentage point increase in the annual growth of the total credit extended to the private sector, as the total Private Sector Credit Extended (PSCE) recorded an annual increase of 5.1% in December 2017.
This shows a fluctuating private credit situation annually, as well as a growing monthly trend of PSCE annual growth, as November recorded a lower annual PSCE increase of 4.7%.
Individual credit stood at N$53.6 billion in January, a monthly increase of N$241 million from N$53.4 billion recorded in December 2017, and an annual increase of N$3.6 billion from N$49.9 billion recorded in January 2017. Overall, individual credit saw an annual increase of 7.4%, which is 0.7 percentage point higher than the 6.7% recorded in this category the previous month.
Loans and advances, overdrafts, mortgage loans and other newly introduced loans did not only drive the increase in the individual credit category but in the whole total PSCE, with monthly increases of N$187 million, N$115 million, N$66 million and N$5 million. Other types of credit in this sector saw an N$80 million monthly increase in January 2018.
While individual credit drove the overall PSCE, instalment credit in this category went down in January 2018 to N$7.14billion from N$7.17 billion the previous month, which represents a N$26 million drop on a monthly basis. Instalment credit also realised an annual drop from N$7.33 recorded in January 2017.
Another notable highlight in individual credit trends is that while leasing transactions went up by N$100 000 monthly from N$19.3 million to N$19.4 million in January 2018, it realised an annual drop of N$1.6 million from the N$21 million recorded in January 2017.
January’s overall increase in business credit is much lower than that in individual credit, with many types of credit in this category recording both a monthly and annual decrease in January 2018.
Total credit to businesses stood at N$36.396 billion, a N$96 million monthly increase from the N$36.300 billion recorded in December 2017.
In this category, overdrafts, loans and advances, and leasing transactions went up in January 2018 by N$433 million, N$196 million and N$14 million respectively. The rest of the credit in business category saw a decrease, which helped calm down the total increase, which is highly driven by overdrafts and loans and advances.
Mortgage loans, newly introduced loans and advances, instalment credit and other claims all went down in January by N$102 million, N$135 million, N$97 million and N$16.8 million respectively.
Overall, claims on non-resident private sector went up by N$6.1 million in January 2018 to N$ 522.5 million from the N$516 million recorded in December 2017.