{"id":28846,"date":"2021-08-02T15:55:09","date_gmt":"2021-08-02T13:55:09","guid":{"rendered":"https:\/\/ijg.net\/research\/?p=28846"},"modified":"2021-08-17T16:09:47","modified_gmt":"2021-08-17T14:09:47","slug":"psce-june-2021","status":"publish","type":"post","link":"https:\/\/ijg.net\/research\/psce-june-2021\/","title":{"rendered":"PSCE \u2013 June 2021"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Overall<\/strong><\/p>\n\n\n\n

Private sector credit (PSCE) rose by N$300.7\nmillion or 0.29% m\/m in June, bringing the cumulative credit outstanding to\nN$105.31 billion. On a year-on-year basis, private sector credit grew by 2.55%\nin June, compared to the 2.66% y\/y growth recorded in May. On a rolling\n12-month basis, N$2.62 billion worth of credit was extended to the private\nsector. N$2.38 billion worth of credit has been extended to individuals over\nthe past 12 months, while N$334.5 million was issued to corporates. The\nnon-resident private sector decreased their borrowings by N$94.1 million.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Credit\nExtension to Individuals<\/strong><\/p>\n\n\n\n

Credit extended to individuals increased by 0.4%\nm\/m and 4.04% y\/y in June, growing at a slightly quicker pace than the 3.98%\ny\/y increase recorded in May. The month-on-month growth has mostly been driven\nby an increase in Mortgage loans by individuals which rose by 0.3% m\/m and 4.9%\ny\/y. Instalment credit increased by 3.2% m\/m and 1.0% y\/y, the third\nconsecutive month of increase on an annual basis. Overdraft facilities extended\nto individuals contracted by 0.9% m\/m, but increased by 5.0% y\/y. Other loans\nand advances (OLA) rose by 0.8% m\/m and 2.3% y\/y.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Credit\nExtension to Corporates<\/strong><\/p>\n\n\n\n

Credit extension to corporates grew by 0.4% m\/m,\nfollowing four consecutive months of declines. On an annual basis, growth in\ncredit extension to corporates decelerated to 0.8 % y\/y in June, compared to\nthe 1.2% y\/y growth registered in May. On a monthly basis, mortgage loans and\nother loans and advances (OLA) rose by 0.4% and 0.2% respectively. Overdraft\nfacilities extended to corporates contracted by 4.6% m\/m. On a year-on-year\nbasis, OLA contracted 2.4%, while mortgage loans and overdrafts increased 0.8%\nand 5.7%, respectively. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Banking\nSector Liquidity <\/strong><\/p>\n\n\n\n

The overall liquidity position of commercial banks improved during June, increasing by N$213.4 million to reach an average of N$554.3 million. The BoN attributed the diminishing liquidity position to net transfers by investment managers as well as several cross-border transfers during the period under review. The outstanding balance of repo\u2019s subsequently rose to N$1.7 billion at the last week of the month. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Reserves and Money Supply<\/strong><\/p>\n\n\n\n

As per the BoN\u2019s\nlatest money statistics release, broad money supply contracted by N$2.53\nbillion or 2.0% y\/y in in June, compared to the 1.3% y\/y decrease recorded in May.\nForeign reserve balances increased by N$2.8 billion to N$41.8 billion in June.\nThe BoN ascribed the increase in official reserve stock to the inflow of the\nAfDB loan and the IMF Rapid Financing Instrument (RFI) during the period under\nreview.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Outlook<\/strong><\/p>\n\n\n\n

The\nN$300.7 million or 0.3% m\/m expansion of PSCE growth in June is the first month-on-month\nincrease since January 2021. The rolling 12-month private sector credit issuance\nincreased 6.9% y\/y, with individuals continuing to take up most (90.8%) of the\ncredit extended over the past 12 months.<\/a><\/p>\n\n\n\n

Mortgage loans by corporates recorded positive year-on-year growth for the first time in 15 months, while overdrafts decelerated to single digits for the first time in 8 months. IJG expects the BoN to leave the repo rate unchanged at the current historically low level until the end of the year, assuming that the inflation forecast for both Namibia and South Africa remains unchanged. This should continue to assist over-indebted individuals and businesses, but as we\u2019ve pointed out in the past, will likely not lead to significant additional credit uptake unless the economic outlook improves meaningfully. <\/p>\n","protected":false},"excerpt":{"rendered":"

Overall Private sector credit (PSCE) rose by N$300.7 million or 0.29% m\/m in June, bringing the cumulative credit outstanding to N$105.31 billion. On a year-on-year basis, private sector credit grew by 2.55% in June, compared to the 2.66% y\/y growth recorded in May. On a rolling 12-month basis, N$2.62 billion \u2026 Continue reading → <\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,22],"tags":[],"class_list":["post-28846","post","type-post","status-publish","format-standard","hentry","category-economicresearch","category-psce"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/28846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/comments?post=28846"}],"version-history":[{"count":3,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/28846\/revisions"}],"predecessor-version":[{"id":29033,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/28846\/revisions\/29033"}],"wp:attachment":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/media?parent=28846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/categories?post=28846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/tags?post=28846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}