business reporter
“We are not out of the woods yet and our economy is desperate for the right stimulus that can take the form of productive credit to revive the economy. Banking institutions should continue to responsibly lend to key sectors of the economy to sustain the economic recovery seen over the past eight months.”
Johannes ǃ, Governor of the Bank of Namibia (BoN) This is Gawaxab’s impression. In his recent efforts, he encouraged various banks to create an environment conducive to economic growth. !Gawaxab said that while Namibia currently enjoys stable currency and financial conditions that are essential for macroeconomic stability, Covid He said sustainable economic development in the post-19 environment would be elusive.
As a result, he provided guidance on the importance of stepping up efforts to create an environment that ultimately leads to sustained economic recovery, economic development, job creation, and poverty eradication.
The governor said credit to businesses and households remains constrained, reflecting the urgent need to lubricate the economy further to support generally benign economic activity in many sectors of the economy. I observed that This is a concern.
Businesses are reluctant to take on long-term debt amid the pandemic, while the household sector is reluctant to extend credit due to a drop in household income due to the pandemic (mainly due to unemployment). Private credit is expected to grow by an average of 3.3% in the first seven months of 2022 and by 5.0% for the whole of 2022. Overall, private sector credit growth has remained in the single digits since November 2016, the longest it has been in Namibia’s post-independence history.
Recognizing the critical role that banking institutions must play in the recovery effort, as financial intermediaries that hold depositors’ funds and lend them safely and responsibly, the Governor calls on all banking institutions in this post to It urged a balance between the interests of stakeholders. Covid-19 environment and where feasible, we will do more in helping the economy.
The governor also said the pleas of businesses struggling to survive have not fallen on deaf ears. For example, it eases regulatory requirements to provide relief to banking institutions that deal with bad debts and to help make financial loans to the real economy.
In addition, other liquidity relief measures, such as the release of the capital conservation buffer and the postponement of the concentration risk limit/single borrower limit, should enable financial institutions to respond effectively and prudently to the challenges facing businesses and households. is intended for
Over the next few weeks, the Governor will continue bilateral consultations with industry to address these issues.
“Our fortunes and Namibia’s prosperity are how we will come together as financial sectors, businesses and policy makers to reverse recent economic difficulties, restore business confidence and revive failing businesses. By doing so, we can create jobs and put the economy on a more stable footing.There is no doubt that we can stem the tide and turn our fortunes around,” Gawaxab said. .
