Credits to private sector grows by 21%

Credit to the private sector grew by 21 percent in March 2013, up from 18 percent recorded in the preceding month, according to the central bank’s monthly economic review.

Analysis of banks’ credit to major economic activities indicates that trade activity had the largest share of the private sector credit in March 2013, followed by personal, manufacturing and agricultural activities.

The monthly review for March, as posted by the Bank of Tanzania (BoT), shows that banks’ credit to trade activity jumped to 21.8 per cent in March from 21.4 per cent in February and 19.9 per cent in the corresponding period last year.

The bank’s credit to personal activity declined slightly to 19.7 per cent in the period under review from 19.8 per cent in February and 21.9 per cent in the previous year. Similarly, credit extended to agricultural activities increased to 11.2 per cent from 10.8 in February.

The manufacturing sector recorded a slight drop of credits in the period under review to 11.8 per cent from 11.9 per cent in the corresponding period. Credits extended to building and construction was 4.9 per cent compared to 5.2 per cent in February.

In the year ending March 2013, Net Foreign Assets (NFA) of the banking system grew by 15.9 percent, compared to a contraction of 1.4 per cent recorded in the year ending February 2013.

This increase was mainly reflected in the holdings at the Bank of Tanzania following an increase in foreign exchange inflows coupled with moderate payments of government external obligations.

During the same period, the growth of Net Domestic Assets (NDA) of the banking system declined as government position improved. 

As a result, extended broad money supply (M3) grew by 15.3 percent in the year ending March 2013, compared with 13.5 percent recorded in the year ending February 2013.
Source: The Daily News, reported from Dar es Salaam
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