Namibian banks lent out N$534.7 million more to businesses and households in January than they had last December, representing a 0.4% rise month on month.
Total credit extended to the private sector rose to N$122.85 billion, according to the latest credit update from IJG Securities.
Despite the monthly increase, annual private sector credit extension slowed to 3.9% in January from 4.4% in December, largely due to weaker uptake and net repayments by corporates.
IJG says the moderation in growth was driven mainly by reduced borrowing activity in the corporate segment, echoing the assessment of the Bank of Namibia.
“The slowdown in private sector credit extension growth emanated from lower uptake and net repayments by the corporate sector during the period under review,” IJG says.
Credit extended to individuals increased marginally by 0.1% month on month, with annual growth accelerating to 3.0% from 2.7% in December.
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