Loans and advances July performance

Loans and advances July performance
Published: 16 September 2013
According to the Reserve Bank of Zimbabwe's monthly report for July, credit to the private sector continued to be driven by loans and advances, which were partly sustained by offshore lines of credit, as the local economy continued to face liquidity challenges.

Loans and advances increased largely due to demand for credit in manufacturing 19,43 percent, agriculture 17,27 percent and distribution 16,62 percent.

Households accounted for 18,50 percent of total loans and advances to the private sector. Credit to the private sector was mainly utilised for asset purchases at 37,65 percent as well as inventory build-up (36,74 percent).

Loans and advances utilised for fixed investment activity have remained low, with the procurement of plant and equipment accounting for 2,91 percent and pre and post shipment financing at 2,19 percent of total loans and advances.

The graph above shows the distribution of loans and advances to diffrent economic sectors from the commercial banks for the months of June and July.

The total value of loans and advances distributed in July was $2, 5 million which is a 6 percent rise from the previous month of $2,4 million.

The rise is mainly as a result in the increase in loans and advances to sectors such as the construction sector which rose by 7 percent from June's $37 474 to July $40 342.

The Distribution sector's advances from the commercial banks also rose by 9 percent from $425 521 to $464 921.The manufacturing sector saw a 19 percent rise in the loans and advances from the month of June $454 368 to July $541 025 which is a significant rise. Loans and advances to individuals also rose by 10 percent.

However some sectors saw some declines in loans and advances ditributed to them, these include conglomerates which saw a significant decline of 60 percent from June $11 033 to July $4 455. The Agricluture sector also saw a 13 percent decline.

Financial organisations, financial and investments sector and the communication sectors recorded declines of 28 percent, 6 percent and 12 percent respectivly.
- herald
Tags: LOans, Advances,


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