Unsecured household debt worries FSC

At the helm: BoB governor, Moses Pelaelo chairs the Financial Stability Council PIC: THALEFANG CHARLES
At the helm: BoB governor, Moses Pelaelo chairs the Financial Stability Council PIC: THALEFANG CHARLES

Nearly 73% of the P45.9 billion owed by households to commercial banks is unsecured, a situation which could cause distress in the event of a sudden, sharp tightening of financial conditions, a multi-agency council has warned.

The Financial Stability Council (FSC), made up of the Bank of Botswana, Non-Bank Financial Institutions Regulatory Authority, Financial Intelligence Agency and the Finance Ministry, revealed the findings in its latest report covering the year to March 2022.

As at March 2022, household borrowers, a term that refers to individual rather than corporates, owed commercial banks P33.3 billion in unsecured debt, out of the P45.9 billion in total outstanding debt they owe.

Editor's Comment
Oh what a State funeral!

That rare sight deserves heartfelt praise, not only for President Duma Boko and his administration, but also for the Botswana Democratic Party (BDP), the Umbrella for Democratic Change (UDC), the Mogae family, and the entire country.President Boko’s decision to grant a full state funeral to a man who belonged to a rival party was a mark of true statesmanship. He recognised that national leadership carries a weight that belongs to the whole...

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