Africa-Press – Namibia.
The Bank of Namibia’s stock of international reserves fell by 2.6% to N$58.1 billion at the end of July.
The decline was mainly driven by higher net rand outflows from commercial banks for portfolio investment abroad.
“This level of international reserves translates into 3.8 months of import cover, whereas the import cover excluding oil exploration and appraisal activities stood at 4.3 months,” the central bank said.
Commercial banks’ overall cash balances declined to an average of N$5.8 billion in July, down from N$6.1 billion in June.
The reduction was largely due to corporate tax payments due at the end of June, the bank said.
Annual growth in mortgage credit stood at 0.00% in July, compared to a contraction of 0.3% in June.
“Although mortgage credit uptake by households increased by 0.8% in July from a growth rate of 0.5% recorded in the previous month, the increase was offset by the contraction in the growth of mortgage credit extended to businesses, which remained in negative territory in July,” the central bank said.
Growth in instalment sale and leasing credit slowed slightly, recording 17% in July compared to 17.4% in June.
“The slightly lower growth was due to lower uptake by businesses during the month under review. The lower growth in instalment sale and leasing credit was further reflected in the month-on-month drop in passenger vehicle sales observed in July,” the central bank said.
Annual growth in other loans and advances rose to 8.6% in July from 8.3% in June.
“The marginal uptick in growth stemmed from an increase in the uptake by businesses during the period under review,” the bank said.
Overdraft lending growth declined in July but remained in double digits at 14.9%, compared to 17.4% in June.
“The lower growth observed in overdraft credit was mainly due to repayments by businesses in the manufacturing as well as wholesale and retail sectors. Meanwhile, growth in household overdrafts remained in negative territory for consecutive months,” the bank said.
Household credit rose moderately to 2.7% in July, up from 2.4% in June, driven by mortgage loans and instalment sale and leasing credit.
However, growth in household overdraft credit and other loans and advances declined during the month, the bank added.
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