Household Borrowing Slows Down

source: Mmegi
Mbongeni Mguni
Staff Writer

The recession and its numerous ill-effects on workers has dramatically reduced the appetite for credit among households, the latest Bank of Botswana statistics indicate.

According to the central bank, household borrowings rose by 23 percent or P1.88 billion during 2008, meaning that workers owed commercial banks P9.76 billion by the end of that year. In contrast, borrowings during 2009 rose by only 8.7 percent or P916.4 million, ending the year at P11.44 billion.

While total credit advanced by commercial banks went up by P309.5 million between November and December last year, households only accounted for P105.3 million of this figure, representing a change from previous years when household loans led credit growth.

As at December last year, credit to households accounted for [continue reading]

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