South Africa's private sector increases credit requests

Jul 29, 2010

Demand for credit in South Africa rose for the second consecutive month during June, figures from the country's Central Bank have revealed

New data from the body shows claims for credit made by the private sector were up 0.92 per cent year-on-year over the course of June, extending the 0.8 per cent gain seen the previous month. May's increase ended three consecutive months of decline, which peaked with a slide of 0.86 per cent in April.

A total of 2.011 billion rand (€210.8 million) was requested by the private sector in June - up from 2.002 billion rand the previous month. Mortgage advances accounted for 1.02 billion rand, with other forms of loans and advances totalling 628 billion rand. Leasing finance made up 30.8 million rand of the sum.

The rise in private sector credit demand was slightly lower than had been forecast, with a poll by Reuters predicting the year-on-year figure would reach one per cent.