Namibia will be hit by slowdown, says BoN

THE financial sector in Namibia was stable and “not directly affected” by the international turmoil of late, said the Bank of Namibia (BoN), but would be hit by the expected global economic slowdown following the US credit crisis, which has spilt over to Euroland.

Governments of several countries among them Germany, France and the United Kingdom have guaranteed savings of their citizens, while Iceland is ont the brink of total collapse. “We have been closely monitoring developments in the global financial system.The Bank would like to inform the public that Namibia’s financial sector has not been directly affected by the current global financial instability,” said Ipumbu Shiimi, Assistant Governor and Head of Financial Stability at BoN.”Although the impact on the financial sector has been limited, the Namibian economy is expected to be adversely affected by the weaknesses in the global financial system through the concomitant slowdown in the world economy and the shying away of investors from emerging markets,” Shiimi cautioned.”Namibia’s financial sector has limited exposure to the origin countries of the financial instability.BoN is aware that the stability of the global financial system has weakened further since the publication our Financial Stability Report in March 2008,” Shiimi said.The next report will be out at the end of this month.Despite these indirect negative effects, the BoN does not see any imminent threat to the soundness of the banking sector nor of the entire financial sector in Namibia.”The Bank will continue to closely monitor developments in the global and domestic financial systems and take appropriate actions when deemed necessary,” it said.”We have been closely monitoring developments in the global financial system.The Bank would like to inform the public that Namibia’s financial sector has not been directly affected by the current global financial instability,” said Ipumbu Shiimi, Assistant Governor and Head of Financial Stability at BoN.”Although the impact on the financial sector has been limited, the Namibian economy is expected to be adversely affected by the weaknesses in the global financial system through the concomitant slowdown in the world economy and the shying away of investors from emerging markets,” Shiimi cautioned.”Namibia’s financial sector has limited exposure to the origin countries of the financial instability.BoN is aware that the stability of the global financial system has weakened further since the publication our Financial Stability Report in March 2008,” Shiimi said.The next report will be out at the end of this month.Despite these indirect negative effects, the BoN does not see any imminent threat to the soundness of the banking sector nor of the entire financial sector in Namibia.”The Bank will continue to closely monitor developments in the global and domestic financial systems and take appropriate actions when deemed necessary,” it said.