Private sector credit declines

Private sector credit declines
Published: 17 March 2014

Total credit to the private sector declined 2.3% to $3.56 billion in January from $3.65 billion in December with 84% of that amount going towards loans and advances.

According to the Reserve Bank of Zimbabwe, monthly economic review for January, the slowdown in credit reflects shallow lending by banks on the back of liquidity challenges, constrained deposit base and increasing non-performing loans.

The economy has slowed down and this has affected demand, credit and activity across all industry.

The country last week officially slipped into deflation as opposed to when it has been in disinflation over the last few years.

Deflation periods are typically associated with downturns in the economy.
- herald
Tags: Credit,


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