IMF warns Botswana on household debt

In a statement released on Wednesday, the IMF added its opinion to a subject that several economic commentators have warned has the potential to unravel the country's generally robust banking sector. "The authorities should pay close attention to macro-financial linkages," the IMF said in a statement following a recent consultative mission.

"The high level of exposure of the banking system to household debt is a significant source of vulnerability and warrants close monitoring." By April, individuals (households) owed commercial banks P16.1 billion, with approximately 67 percent of this classified as "unsecured" debt, meaning banks would have difficulties recovering part of or all of the due debt in case of default by borrowers.