AfricaPress-Tanzania: DOMESTIC credit by the banking system grew by 10.7 per cent in the year ending October compared to 8.7 per cent in the corresponding period last year.
According to the Bank of Tanzania (BoT) monthly economic review for November, the credit extended to the central government through purchases of government securities grew by 39.1 per cent, much more than 3.4 per cent.
The credit to the private sector increased by 946.7bn/- , equivalent to an annual growth of 4.9 per cent, compared to 5.2 per cent in September this year.
Credit growth to the private sector was more pronounced in transport and communication activities, with a growth rate of 20.8 per cent, trailed by personal activities (17.0 per cent) and hotels and restaurants (10.6 per cent).
In terms of share of the total outstanding credit to the private sector, personal loans, trade and manufacturing activities continued to account for the largest share, at 33.4 per cent, 15.8 per cent and 10.2 per cent, respectively.
The Bank continued to implement accommodative monetary policy in supporting the economy to withstand spill over adverse shocks arising from the Covid- 19 pandemic.
The supportive monetary condition led extended broad money supply to increase by 1.65tri/- in the year ending October this year.
This was equivalent to an annual growth of 5.9 per cent, compared with 6.5 per cent in the preceding month.
