Banks caught in liquidity, weak economy spiral
Friday, August 28, 2015
![Linah Mohohlo](https://cdn4.premiumread.com/?url=https://www.mmegi.bw/uploads/imported_images/2015/august/28/php34B.tmp.jpg&w=400&q=72&f=jpg&t=1)
Linah Mohohlo
According to Bank of Botswana (BoB) figures released this week, the rate of loans uptake by both business and households dropped 45 percent in the first half of the year, from 13.5 percent in December 2014 to 7.4 percent in June 2015. The slower credit growth comes on the backdrop of a two pronged intervention by the BoB in the period, raising suggestions that the simple matrix of supply and demand of credit in the banking system has been caught up in other industry-bred complexities.
In a bid to bolster economic growth through reduced cost of lending by commercial banks, the central bank cut the benchmark rate by a percentage point in the first half of the year.
The BDP as a party known to have ample resources has always held its primaries well in time, but this time around that was not the case. The first leg of the primaries was held last weekend, with the final leg being billed for the coming weekend. This time around, the BDP failed to shine in its primary elections. The elections were chaotic; most if not all polling stations didn't open at the specified time of 6am. Loyal BDP members braved the...