Bank of Namibia sees strong demand for installment credit

Oct 10, 2012

The Bank of Namibia has reported further demand for installment credit among consumers across the country.

The Bank of Namibia has reported further demand for installment credit among consumers across the country.

According to the organisation, installments sales had gone up by 13.2 per cent during August 2011 year-on-year, the Namibian reports.

However, an increase of more than 18 per cent was recorded in the same period of 2012.

Ipumbu Shiimi, governor of the Bank of Namibia, has expressed his concern at the figures, given the fact people are not saving as much as they used to.

As a result, he has urged consumers to try to reduce their dependency on installment sales, which are currently at their highest level in six years.

Patrick Britz, Capricorn Investment Holdings' assistant portfolio manager, added that annual growth in installment sales throughout 2012 has been "significantly higher" than in 2011.

The Bank of Namibia is now considering whether steps such as raising interest rates might help to tackle this continuing problem.ADNFCR-2976-ID-801466832-ADNFCR