Businesses struggle to repay bank loans

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Loan arrears owed by businesses to commercial banks continues to rise, a trend that analysts say could be a sign of increasingly difficult operating conditions.

Bank of Botswana (BoB) figures show total arrears as a proportion of outstanding bank credit increased from 4.5 percent at the end of  the fourth quarter of 2013 to 5.2 percent as at  end of March 2014.

“This increase is attributable to a large increase in arrears on credit to firms, while arrears on credit to households decreased. The increase in arrears on credit to firms is alarming as it indicates a further deterioration in business conditions,” reads a second quarter economic review report from Econsult.

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Women unite for progress

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