Credit uptake drops among businesses
Mbongeni Mguni | Friday November 9, 2018 09:50
Bank of Botswana data released this week shows that while restrained, credit growth among resident businesses had been marginally rising from the beginning of the year, with total commercial bank loans outstanding to the sector reaching an annual peak of P28.8 billion in June.
In July, however, the outstanding loans slipped to P22.5 billion and in July, sank further to P22.4 billion. At this latest level, businesses accounted for just under 40% of total loans outstanding to commercial banks, compared to 60.2% for households (individual customers).
As part of its accommodative monetary policy, the Bank of Botswana has kept interest rates at record lows in recent years, in order to stimulate economic activity.
Critics have said the policy is not being efficiently transmitted to its intended targets due to other competing challenges in the local macro-economy.