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Banks face ‘unprecedented’ liquidity crunch

Engines of the economy: Small businesses are at the centre of economic activity in the country, but the liquidity crunch means their funding may be limited PIC: MORERI SEJAKGOMO
Engines of the economy: Small businesses are at the centre of economic activity in the country, but the liquidity crunch means their funding may be limited PIC: MORERI SEJAKGOMO

The local banking sector is facing an 'unprecedented' liquidity crisis that threatens to hamper the lending activities required for the private sector’s growth, BusinessWeek has established.

The Bank of Botswana (BoB) released about P1.8 billion to banks in December, as liquidity dried up in the market because of a slowdown in government spending related to the prolonged diamond slump.

The situation has not abated this year and could intensify as government digs deeper into the capital market for debt to finance the P22.1 billion deficit expected in the 2025–2026 financial year.

Editor's Comment
Let’s fight GBV as a collective

Botswana for the longest time was known for her virulent peace with family being an enviable institution.As the media, we are also scared to be incessantly reporting on these bloody scenes where women are brutally murdered and worse, sometimes in front of their children and loved ones. Yes, we have reported cases where men were also brutally murdered by their loved ones, but such cases are a drop in the ocean.For the past two weeks, Botswana was...

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