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12:36Last update on: 13 Aug 2013
The Namibian
Tue 13 Aug 2013
SMS Of The Day * THIS nation is in dire need of a massive conference on housing. When we experienced a crisis in the education sector a crisis-control brain-storming conference was organised which resulted in the best deal ever for the Namibian child, nam Food For Thought * BOURGEOISIE has become a daily occupation if not the order of the day of the upper-echelons, President Hifikepunye Pohamba we urge you to revisit this unpatriotic geocentricism among your staff and the well-connected, for everybody to r Bouquets And Brickbats * COMMISSIONER of Prisons, can you please explain the strategies you use to appoint officers to certain positions? It is my observation that you are being fed with wrong information then you just promote individuals without making p SMS Of The Day * I THINK Paulus ‘The Rock’ Ambunda lost his belt because of this promoter and trainer. How can a world champion still be training at the Katutura Youth Complex where there is not enough equipment. I think they must follow the example of Ha Food For Thought * NAMIBIA Dairies are unable to match low prices of imported milk and this ultimately means the consumer will have to pay more for local milk. Look at the prices of the local chicken. All these profits are going in the pockets of a few in Bouquets And Brickbats * I AM pleased to hear that Cabinet has responded positively to the proposal of Namibia Dairies to support the industry. The restrictions which support the industry by reducing competition to ensure the survival of the industry is a SMS Of The Day * CEO’s golden handshakes. Somewhere on our statute books there must be a provision that if a board of directors suspends/dismisses a CEO without due regard to legal provision (substantive/procedural law) such board must carry the costs for Food For Thought * JACKY Asheeke was so right with her last column- why are the fathers of the dead children not being prosecuted? (Reference to the children who died in shack fires last week) Our justice system still protects men over women. In this cont Bouquets And Brickbats * ALEXACTUS Kaure, your column in Friday’s newspaper opened my eyes. One hardly finds impartial case study analysers in Namibia. Let’s not destroy the Polytechnic’s strong foundation (Tjivikua) as yet. At least wait until the transf SMS Of The Day * WHY doesn’t NBC listen when they are criticised? The little red chairs on Good Morning Namibia have done their part and are dirty especially at the arm rests. Please listen for once. You interview professionals and internationals on those Food For Thought * MINISTRY of Education, in order to address the shortages of teachers at primary schools why don’t you consider employing us who hold a diploma in lifelong learning and community education for teaching posts? We also did health education Bouquets And Brickbats * MY fellow Namibians, I am not a Swapo member but a third term for President Hifikepuye Pohamba will be a step closer towards attainment of Vision 2030. Believe me His Excellency has made crucial bold decisions, and I don’t regret
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BUSINESS - ECONOMY
| 2013-08-13
Debt continues to grow
Chamwe Kaira
THE Bank of Namibia has released its selected monthly statistics for June. The statistics show that total Namibian debt (comprising domestic and foreign government, corporate and household debt) grew by 1,19% during June to N$80,64 billion. This represents an annual growth rate of 10,15%, slightly lower than the growth recorded in May of 10,2%.
Commenting on the statistics, Simonis Storm Securities said total growth has subsided from 25,8% a year ago, mainly as a result of reduced government debt issuance and reduced volume of credit extension to the private sector.
Simonis said private sector credit has grown by 15,5% over the past 12 months, above the Namibian nominal GDP growth rate of approximately 11,5%, indicating continued strong activity within the private sector albeit slightly slower.
As a percentage of GDP, total debt has increased by a percentage point to 77,6%, Simonis said in a report yesterday.
Simonis said total Namibian government debt had stabilised since January 2012, fluctuating between N$24 billion and N$26 billion.
“Over the 12 months to June 2013, total government debt has grown by 0,27% to N$25,69 billion. The government continues to reduce the proportion of its domestic short-term paper (Treasury Bills); currently this is 44% of total domestic debt, compared to 53,7% a year ago.
Simonis said the government debt as a percentage of GDP has also remained fairly constant since July last year averaging 24,64% on a monthly basis.
According to the recently published Medium Term Expenditure Framework funding strategy that goes up to 2015/16 government plans to issue N$11,5 billion in debt securities over that period.
“This will likely push the total government debt GDP to about 31%, up from the current 24,8%. The government has committed to keep its debt below 35% of GDP.
Currently the government has deposits of N$6,7 billion with the Bank of Namibia, down from N$7,8 billion a month ago,” Simonis said.
Credit extended to the private sector (corporate and households) grew to N$54,94 billion in June. The annual growth in credit extension continues to moderate since the highs recorded towards the end of last year. However, the 12-month growth in June picked up to 15,5% from 14,8% for May, the report said.
Corporate debt rose marginally to N$21,1 billion during June, this represents a 1,9% increase for the month and 20,1% over the last 12 months. The 12-month credit extension growth has moderated from 30,2% in November 2012 to the current 20,1%, this moderation may indicate a slowdown in general business activity, the report said. “We expect the trend to remain the same unless there is a change in the interest rate environment.”
Simonis said credit to individuals continues to grow, albeit at a slowing pace, June’s twelve month growth was 12,7%, up slightly from 11,8% for May.
“Household credit growth appears to be growing at a much faster rate albeit slightly lower than June’s 2012 yearly growth of 13,44%. We expect next month’s growth to be even higher with a renewed appetite for consumers to take on debt as can be seen with high new vehicle purchases and increased housing mortgages,” said Simonis said.
Commenting on the statistics, Simonis Storm Securities said total growth has subsided from 25,8% a year ago, mainly as a result of reduced government debt issuance and reduced volume of credit extension to the private sector.
Simonis said private sector credit has grown by 15,5% over the past 12 months, above the Namibian nominal GDP growth rate of approximately 11,5%, indicating continued strong activity within the private sector albeit slightly slower.
As a percentage of GDP, total debt has increased by a percentage point to 77,6%, Simonis said in a report yesterday.
Simonis said total Namibian government debt had stabilised since January 2012, fluctuating between N$24 billion and N$26 billion.
“Over the 12 months to June 2013, total government debt has grown by 0,27% to N$25,69 billion. The government continues to reduce the proportion of its domestic short-term paper (Treasury Bills); currently this is 44% of total domestic debt, compared to 53,7% a year ago.
Simonis said the government debt as a percentage of GDP has also remained fairly constant since July last year averaging 24,64% on a monthly basis.
According to the recently published Medium Term Expenditure Framework funding strategy that goes up to 2015/16 government plans to issue N$11,5 billion in debt securities over that period.
“This will likely push the total government debt GDP to about 31%, up from the current 24,8%. The government has committed to keep its debt below 35% of GDP.
Currently the government has deposits of N$6,7 billion with the Bank of Namibia, down from N$7,8 billion a month ago,” Simonis said.
Credit extended to the private sector (corporate and households) grew to N$54,94 billion in June. The annual growth in credit extension continues to moderate since the highs recorded towards the end of last year. However, the 12-month growth in June picked up to 15,5% from 14,8% for May, the report said.
Corporate debt rose marginally to N$21,1 billion during June, this represents a 1,9% increase for the month and 20,1% over the last 12 months. The 12-month credit extension growth has moderated from 30,2% in November 2012 to the current 20,1%, this moderation may indicate a slowdown in general business activity, the report said. “We expect the trend to remain the same unless there is a change in the interest rate environment.”
Simonis said credit to individuals continues to grow, albeit at a slowing pace, June’s twelve month growth was 12,7%, up slightly from 11,8% for May.
“Household credit growth appears to be growing at a much faster rate albeit slightly lower than June’s 2012 yearly growth of 13,44%. We expect next month’s growth to be even higher with a renewed appetite for consumers to take on debt as can be seen with high new vehicle purchases and increased housing mortgages,” said Simonis said.
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