Home Southern Africa Namibian debts skyrocket to N$110.5bn debt

Namibian debts skyrocket to N$110.5bn debt

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(3 minutes read)

Namibian businesses and individuals have accounted for a combined debt of over N$110.5 billion as of December 2022, according to the latest Private Sector Credit (PSCE) figures. Of that, individuals owe over N$64.7 billion, while businesses owe over N$45.8 billion.

Namibian businesses and individuals have accounted for a combined debt of over N$110.5 billion as of December 2022, according to the latest Private Sector Credit (PSCE) figures. The data shows that individuals owe over N$64.7 billion, while businesses owe over N$45.8 billion.

According to IJG, highly regarded in the region for its top-quality research, the growth rate of individual credit has increased by 4.75% year-on-year, while credit extended to the private sector has grown by 3.50%. The annual growth rate has been ticking up for four consecutive months, with the December growth rate being the highest since June 2020. Overdraft facilities to individuals grew by 1.9% m/m but fell 0.4% y/y. On an annual basis, corporate credit grew by 3.5% y/y in 2022, following contractions in both 2020 and 2021.

The data shows that mortgages account for N$58.7 billion of the debt and saw a 1.12% increase year-on-year and a 0.16% month-on-month increase. Other loans and advances account for N$28.6 billion, while overdrafts and credit instalments account for N$12.4 billion and N$10.9 billion, respectively. Overall, PSCE growth rebounded in 2022, following two years of very subdued growth,” says IJG.

The normalised 12-month issuance of N$4.10 billion is nearly three times higher than the issuance of 2021, and one-and-a-half times higher than that of 2020. Corporate credit issuance was positive in 2022. The 12 months also saw individuals taking up N$1.66 billion more than they did in 2021.

 Read Also;

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https://trendsnafrica.com/contract-awards-external-peer-reviewer-for-the-evaluation-of-the-african-development-bank-groups-economic-and-sector-work-phase2-idev/

The overall liquidity position of commercial banks improved in December 2022, according to IJG, rising by N$1.40 billion to an average of N$5.84 billion. The Bank of Namibia ascribed the increase to a rise in diamond sales coupled with portfolio rebalancing.

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