Govt turns to N$1.8b overdraft

The government’s available cash balance dropped to zero at the end of May, forcing it to rely on an overdraft facility of N$1.8 billion to cover its financial needs.

This is according to the latest statement of assets and liabilities the Bank of Namibia (BoN) has released.

An overdraft allows the government to access funds beyond what is available in its account, similar to a temporary loan facility used to meet individuals’ financial commitments.

In March, the government recorded a negative balance of N$3.23 billion. This improved temporarily in April, when the state held a deposit of N$379.2 million.