Mmegi

BoB releases P2bn to banks as govt cash crunch spills over

Taking action: Dekop PIC: PHATSIMO KAPENG
Taking action: Dekop PIC: PHATSIMO KAPENG

The Bank of Botswana is allowing local banks access to about P2 billion of their own cash held in reserve, to alleviate a liquidity crisis caused by the sharp drop in cash inflows from the banks’ biggest customers – the government and Debswana.

From December 11, the Primary Reserve Ratio or PRR, which is a proportion of deposits banks are required to keep at the BoB in order to manage liquidity or cash flows, will be reduced from a rate of 2.5% to zero.

The move will allow banks to have access to an additional P2.1 billion for lending activities, as a liquidity crunch first noted as far back as May, deepens.

Editor's Comment
Mabogo dinku a thebana

According to both the acting director of Veterinary Services, Kobedi Segale and acting Lands and Agriculture minister, Edwin Dikoloti, the virus currently raging through the North-East mostly likely first entered the country during the festive season.From the “unprecedented” number of cases picked in testing last week, it is likely that cattle and other livestock could have been infected last year, without being reported.Animal health...

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