{"id":31620,"date":"2022-05-03T14:02:39","date_gmt":"2022-05-03T12:02:39","guid":{"rendered":"https:\/\/ijg.net\/research\/?p=31620"},"modified":"2022-05-03T14:02:41","modified_gmt":"2022-05-03T12:02:41","slug":"psce-march-2022","status":"publish","type":"post","link":"https:\/\/ijg.net\/research\/psce-march-2022\/","title":{"rendered":"PSCE \u2013 March 2022"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Private sector credit (PSCE) rose by N$1.35 billion or 1.2% m\/m in March, bringing the cumulative credit outstanding to N$114.4 billion. On a year-on-years basis, private sector credit grew by 8.7% y\/y, compared to the 7.1% y\/y growth recorded in February. The growth was however again largely driven by a substantial increase in claims on non-resident private sectors. Normalising for this sees March PSCE growth at -0.9% m\/m and 1.7% y\/y. On a 12-month cumulative basis N$9.17 billion worth of credit was extended to the private sector. N$1.40 billion worth of credit has been extended to individuals on a 12-month cumulative basis, while corporates took up N$835 million. The non-resident private sector increased their borrowings by N$6.94 billion.<\/p>\n\n\n\n

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

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

Credit\nextended to individuals fell by 0.2% m\/m, but rose 2.3% y\/y in March. On a\nmonthly basis, only the instalment credit subcategory posted growth, increasing\nmarginally by 0.2% m\/m and 1.5% y\/y. Mortgage loans to individuals contracted\nby 0.2% m\/m but rose 2.2% y\/y, while overdraft facilities fell by 1.3% m\/m and\n1.0% y\/y. Other loans and advances (consisting of credit card debt, personal-\nand term loans) declined by 0.2% m\/m, but rose 4.0% y\/y. <\/p>\n\n\n\n

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

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

Credit demand by\ncorporates remained subdued, with credit extended to corporates declining by\n1.8% m\/m. On a year-on-year basis, credit extended to corporates slowed to 1.9%\ny\/y. Mortgage loans increased by 1.3% m\/m and 6.6% y\/y. Instalment credit by\ncorporates rose by 2.0% m\/m and 11.2% y\/y, although the growth rate is from a\nlow base. Overdraft facilities to corporates continued to fall, declining by\n4.3% m\/m, although still posted a year-on-year growth of 1.3% y\/y. The Bank of\nNamibia (BoN) ascribed the monthly decline to repayments by businesses\noperating in the energy, fishing and health services sectors.<\/p>\n\n\n\n

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

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

The overall liquidity position of the commercial banks deteriorated\nduring March, falling by N$104.5 million to an average of N$2.57 billion. The\nBoN noted that the rise is customary during March as government offices winds\nup expenditure before the close of the fiscal year, coupled with an increase of\nsome investment proceeds. The repo balance rose to N$936.8 million at the end\nof the month after ending February at N$862.6 million.<\/p>\n\n\n\n

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

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

As per the\nBoN\u2019s latest money statistics release, broad money supply (M2) N$1.73 billion\nor 1.4% y\/y to N$129.1 billion. Foreign reserve balances fell by 5.3% m\/m or\nN$2.27 billion to N$40.8 billion. The decline was ascribed to foreign\ngovernment payments coupled with net commercial bank outflows due to an\nincrease in the import bill.<\/p>\n\n\n\n

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

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

While PSCE growth appeared strong again in March, the increase was\nagain primarily driven by a large increase in claims on non-resident private\nsectors. The BoN had previously attributed these substantial increases to a\nloan uptake by one of the commercial banks from its parent company in South\nAfrica. Normalising for this large increase sees PSCE remaining subdued at 1.7%\ny\/y in March, down from a normalised increase of 2.6% y\/y in February.<\/p>\n\n\n\n

Corporate credit demand remains particularly low, with only two of the last six months recording increases on a month-on-month basis. A lack of corporate credit appetite indicates low business confidence and that businesses are not taking up credit to expand their operations. <\/p>\n\n\n\n

As expected, the BoN hiked the repo rate by 25bps at its April MPC\nmeeting. Our expectation remains that we will see 3-4 additional 25 bp hikes\nthroughout the rest of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"

Private sector credit (PSCE) rose by N$1.35 billion or 1.2% m\/m in March, bringing the cumulative credit outstanding to N$114.4 billion. On a year-on-years basis, private sector credit grew by 8.7% y\/y, compared to the 7.1% y\/y growth recorded in February. The growth was however again largely driven by a \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-31620","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\/31620","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=31620"}],"version-history":[{"count":1,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/31620\/revisions"}],"predecessor-version":[{"id":31627,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/31620\/revisions\/31627"}],"wp:attachment":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/media?parent=31620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/categories?post=31620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/tags?post=31620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}