Credit given to private firms increases in Tanzania
The amount of money being lent to private businesses by banks in Tanzania has increased, new figures show.According to the Bank of Tanzania, growth of credit went up by 25.6 percent in the year to June 2011, compared with 16.3 percent recorded at the same time in 2010, the Daily News reported.
In its monthly economic review of July, the financial institution said: "In the recent months the pace of credit to private sector growth continued to pick up, reflecting recovery of banks' confidence in the economy following easing of the global financial crisis."
This increase has taken place to ensure enough money is available to finance the development of infrastructure in the country.
The inter-bank lending rate has also gone up to 12.15 percent, its highest level in three years, it was noted.
Last month, a competition was held in the country to choose up to 19 businesses operating in either the agriculture or renewable energy and climate change sectors that will receive up to $12 million (€8.8 million) in loans and grants.