Govt debt to local banks climbs to N$52.4 billion
The Namibian government increased its borrowing from local banks by N$20.4 billion over the past year, pushing its total debt exposure to the domestic banking system to N$52.4 billion in April and raising concerns about future inflationary pressures. According to Simonis Storm economist Almandro Jansen, government borrowing from the banking sector surged by 63.6% compared […] The post Govt debt to local banks climbs to N$52.4 billion appeared first on The Namibian .
The Namibian government increased its borrowing from local banks by N$20.4 billion over the past year, pushing its total debt exposure to the domestic banking system to N$52.4 billion in April and raising concerns about future inflationary pressures. According to Simonis Storm economist Almandro Jansen, government borrowing from the banking sector surged by 63.6% compared to a year earlier, making it the biggest driver of money supply growth in the economy. The sharp increase means more money has been injected into the financial system through government spending, helping boost liquidity in the economy but also increasing the risk of inflation if the trend continues.
