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Private sector credit extension rises to 4.5% in June
['Guest Contributor', 'Mandisa Rasmeni', 'Michel Haoses']
Namibia Economist
The private sector credit extension (PSCE) increased slightly to 4.5% in June from 4.3% in May, with total claims on the private sector reaching N$125.49 billion, according to IJG Securities.
IJG revealed that total credit extended to businesses increased by N$903.4 million, lifting the outstanding credit balance to N$53.19 billion and increasing the annual growth to 4.5% year-on-year from 4.4% year-on-year.
Meanwhile, credit extended to individuals increased by N$408.8 million, bringing the total stock of household credit to N$72.30 billion, also increasing to 4.5% year-on-year, the strongest expansion since August 2023.
Other loans and advances recorded modest monthly growth of 0.5% month-on-month, although annual growth continued to moderate, easing to 4.9% year-on-year from 5.3% year-on-year in May.
Annual household credit growth was offset by overdraft balances, which declined by N$45.7 million during the month.