Credit growth declines in June

| Friday August 3, 2007 00:00

BoB says although the overall rate of growth has declined by 3.1 percent, it is still 3.5 percent above the upper end of the Bank of Botswana's target range for credit growth of 11 to 14 percent.

The overall reduction in credit growth was attributable to the decline in the rate of growth in credit extended to the business sector, which slowed to 16.5 percent from 28.3 percent in May.

On the other hand, month-on-month business credit fell by 2.4 percent compared to an increase during the previous month of 6.1 percent.

Annual growth in credit to households increased from 15.4 percent in May to 18.2 percent in June.

On monthly basis, household credit grew by 4.9 percent compared to a decrease of 0.5 percent in May. The share of credit to the household sector in overall credit increased from 57.0 percent in May to 58.7 percent in June.