Annual PSCE slightly higher at 6.9 per cent

The annual average growth in the private sector credit extension (PSCE) growth rose slightly during the first eight months at 6,9 per cent compared to the 6,0 during the same period in 2018.

Briefing the media here on Thursday, Bank of Namibia (BoN) Governor Iipumbu Shiimi said the increase in the PSCE was mainly due to increased borrowing by businesses in the retail, real estate, financial and service sectors.

In contrast, growth in credit extended to individuals declined during the first eight months of 2019 compared to the same period in 2018, Shiimi added.

Since the previous Monetary Policy Committee (MPC) meeting, the annual growth in the PSCE slowed to 6,4 per cent at the end of August 2019, from 7,8 per cent stated previously by the committee.

He also said the stock of international reserves declined however still sufficient at N.dollars 32.3 billion compared to N.dollars 35.2 billion reported in the previous MPC statement mainly due to increased foreign outflows.

The levels of reserves still continue to be sufficient and we will be able to support our international obligations and the reserves are able to cover 4.3 months of imports, Shiimi said.

He added that the reserves are sufficient to protect the peg of the Namibian Dollar to the South African Rand and meet the country's international financial obligations.

Source: Namibia Press Agency