The East African - - BUSINESS -

Loan de­faults are cur­rently a prob­lem across the East African mar­ket hav­ing touched a decade high in Kenya. The Na­tional Bank of Rwanda and the Bank of Tan­za­nia have raised the red flag in their re­spec­tive mar­kets over non­pay­ment of loans. The three coun­tries have non­per­form­ing loans at more than 10 per cent of the to­tal loan book, un­der­lin­ing the ex­po­sure by banks.

pro­vi­sions, be­cause it means you have been pru­dent in your pro­vi­sion­ing,” said Mr Omari.

Some of the large lenders with nil pro­vi­sions are Bar­clays, Stan­dard Char­tered and Di­a­mond Trust

In­ter­na­tional lenders are ex­pected to bear the brunt of pro­vi­sion­ing for off bal­ance sheet items, such as letters of credit and trade guar­an­tees, where they have been dom­i­nant lever­ag­ing on their global brands.

Stan­dard char­tered has in­vested Ksh115 bil­lion ($1.15 bil­lion), more than its loan book, in the off

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