Businesses credit increases by 3.8%
MBABANE – The Central Bank of Eswatini (CBE) continues to assist businesses locally, as they have increased their credit by 3.8 per cent.
This was mentioned by CBE in their monthly statistical release where they outlined that credit extended to businesses grew by 3.8 per cent over the month and 13.9 per cent relative to the previous year to close at E8 billion at the end of June 2022.
They said growth in credit to businesses emanated from a rise in credit to distribution and tourism (10.2 per cent), agriculture and forestry (9.2 per cent), manufacturing (3.9 per cent), and real estate (1.8 per cent). However, there was a decline in credit to the following susbsectors; mining and quarrying (-25.7 per cent), community social and personal services (-10.4 per cent), construction (-3.0 per cent), as well as transport and communications (-0.6 per cent).
Extended
CBE said credit extended to households and NPISH amounted to E7.8 billion at the end of June 2022, reflecting an increase of 0.3 per cent month-on-month and 5.0 per cent year-on-year, mainly due to housing loans. “Housing loans grew by 1.1 per cent over the month to reach E3.9 billion. Other personal (unsecured) loans and motor vehicle loans, on the other hand, declined by 0.7 per cent to E3.0 billion and 0.1 per cent to E905.8 million,” said CBE.
The reserve bank also mentioned that credit extended to other sectors increased by 0.2 per cent month-onmonth and declined by 46.2, per cent compared to June 2021, to close at
E759.5 million at the end of June 2022. They outlined that growth in credit emanated from credit to public nonfinancial corporations and other financial corporations, which grew by 0.9 per cent to E278.4 million and 0.2 per cent to E44.2 million, respectively.
They attested that credit to local government, on the other hand, fell by 5.1 per cent to settle at E40.9 million at the end of June 2022.
CBE said Net claims on government with the banking sector amounted to E2.2 billion at the end of June 2022, reflecting an expansion of 48.8 per cent over the month and 57.7 per cent relative to June 2021.
“The rise in net claims on government emanated from a fall in government deposits while claims on government increased. Government deposits declined by 6.1 per cent over the month to E5.7 billion at the end of June 2022,” said CBE.
Claims on government, however, recorded growth of 4.5 per cent to reach E7.8 billion over the review month.
CBE also mentioned that broad money supply (M2) grew by 2.6 per cent from the previous month and fell by 4.6 per cent year-on-year to settle at E20.9 billion at the end of June 2022.
Increase
They said the month-on-month increase in M2 was in line with the improvement with credit extended to the private sector, and was observed on both narrow money supply (M1) and quasi money supply.
On the other end, they said narrow money supply (M1) expanded by 5.5 per cent over the month and fell by 1.7 per cent year-on-year to close at E7.9 billion at the end of June 2022, driven by both its components.
CBE also outlined that transferable (demand) deposits grew by 5.8 per cent to E7.2 billion while Emalangeni outside depository corporations rose by 2.6 per cent to E690.5 million at the end of June 2022.
Quasi money supply improved by 0.9 per cent month-on-month but fell by 6.2 per cent year-on-year to settle at E13.0 billion at the end of June 2022.
Time deposits recorded an increase of 0.9 per cent over the month to reach E11.0 billion.