The Bank of Namibia has maintained the key repo rate at 6.50 percent despite concerns about the high growth in instalment credit extended to households.

First Capital Plus' new status brings the total number of commercial banks in the country to 27.

The apex bank said Wednesday that Private Sector Credit Extension (PSCE) continued to be strong, although it declined in June 2015. PSCE grew by 16 percent over the first six months compared to an average of 15.3 percent over the same period last year.

Governor Ipumbu Shiimi told reporters that a considerable amount of the loans is still largely being used to finance unproductive imported luxury goods, putting additional pressure on the country’s international reserves.

Shiimi however noted that the domestic economy had performed well during the first half of the year led by robust construction activities in the public and private sector, as well as wholesale and retail trade.

The Namibian economy is expected to grow by 5 percent in 2015, up from 4.5 percent last year. Enditem

Source: Xinhua


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