When the hunted becomes the hunter
Friday, May 08, 2015
Cash walk: The Bank of Botswana has moved to ease the liquidity crunch
With the industry facing shortages of loanable funds due to a prolonged period of over-extended lending without commensurate growth in deposits, banks have embarked on a deposit rummage offering unusually high returns for savers.
Sitting on over P10 billion in excess liquidity just two years ago, banks did not need to make any effort to attract deposits and offered menial interest rates to those that held any extra cash for savings.
It is a clear signal that the government’s purse is empty and that our own behaviour has left veterinary officials fighting with one hand tied behind their backs. We have been here before. During COVID-19, many of us thought we knew better. We ignored simple rules, we carried on as if the danger was someone else’s problem, and the virus took lives and left our economy on its knees. We are still broke from that experience. Yet now, with FMD...