Bank arrears top P6bn
Friday, July 12, 2024 | 660 Views |
Day by day: The construction sector’s arrears to commercial banks are growing PIC: MORERI SEJAKGOMO
According to recently released Bank of Botswana data, various sectors of the economy, including households, owed commercial banks about P6.1 billion as at April 30. About P1.57 billion of this was classified as “specific provisions” which means arrears that are more than 180 days overdue, regarded as being in the worst category of defaulters.
By comparison, in March, total commercial bank arrears were estimated at P5.8 billion, with specific provisions of P1.56 billion.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...