Madagascar: The BNI announces a 16 percent increase in bank loans

Dec 11, 2012

The BNI Madagascar has announced a 16 percent increase in the number of people using bank loans between 2011 and 2012.

The BNI Madagascar has announced a 16 percent increase in the number of people using bank loans between 2011 and 2012.

In 2011, the bank had already said that outstanding loans to individuals and small businesses grew by 28 percent, Madagate newspaper reports.

According to the bank, this increase is mainly due to the implementation of a campaign to promote credit entitled "My wishes, my credits."

The offer "is available to all employees, civil servants and private sector," explained BNI officials, quoted by the newspaper Midi Madagasikara.

The bank promises "easy access", "simple procedures" and a "rapid response". It also offers as part of this campaign a two point reduction on the interest rate for loans from 12 to 60 months.

Despite recent progress in access to finance, Malagasy banks have seen the quality of their portfolios decline since the beginning of the economic crisis.

According to the African Economic Outlook website, the proportions of non-performing loans and capital risk levels are fairly low but rising.

Thus, bad and disputed debts increased to 13.8 percent of gross loans at the end of June 2011 (from 11.9 percent in
2010).

The population’s use of banks remains low, hovering around five percent.ADNFCR-2976-ID-801504754-ADNFCR