WINDHOEK, 04 JUN – The annual growth in private sector credit extension (PSCE) increased slightly to 5,8 per cent at the end of April 2018, the Money and Banking Statistics report from the Bank of Namibia (BoN) shows.
The annual growth in PSCE grew by 0,1 percentage point increase compared to March 2018, the BoN said in the report issued on Friday.
The rise in PSCE growth during the period under review was mainly driven by an increase in demand for mortgage credit and corporate sector.
Mortgage credit extended to the private sector rose at the end of April 2018 to 7,9 per cent from 7,5 per cent at the end of March 2018.
The bank said the growth was mainly driven by a rising demand for commercial property loans by the business sector. This pushed the growth in business mortgage credit to 7,9 per cent at the end of April from 5,9 per cent in March this year.
Total household credit moderated to 7,0 per cent at the end of April 2018 from 7,2 per cent recorded at the end of March 2018.
Growth in total credit extended to businesses rose during the same period whilst the annual growth in credit extended to businesses rose to 4,1 per cent at the end of April 2018 from a growth of 3,7 per cent at the end of March 2018.