In the case of Namibia, the instalment credit
category has increased rapidly over the years, financing mostly the import of luxury vehicles and consequently exerting pressure on the international reserves.
Another pounds 152m was borrowed via buy now, pay later forms of instalment credit
Another pounds 152million was borrowed via buy-now-paylater instalment credit
Borrowing through store cards were down 33% year on year to pounds 145 million and store instalment credit
dropped by 27% to pounds 152 million.
Department and appliance stores do extend some instalment credit
to purchasers, but the system of cash lending as we know it in America is virtually unknown there.
The apex bank said that rapid growth of vehicle imports, partly financed by instalment credit
, remains a matter of concern in Namibia.
In particular, instalment credit
card loans soared by 140 per cent during the same period, contributing to a steep increase in the ratio of household liabilities to disposable income to 51 per cent as of year-end 2012 from 44 per cent in 2010 and 37 per cent in 2008.
Non-performing loans are led by mortgages, followed by overdrafts, other loans and advances and instalment credit
in the fourth place.
Borrowing for high street spending saw the biggest dive, store instalment credit
down 23 per cent to pounds 155million and store-card lending 22 per cent lower at pounds 160million.
Store instalment credit
, which had been more resilient than other forms of lending during the recession, also suffered a steep drop, declining by 32 per cent to pounds 160 million.
Borrowing through secondcharge mortgages was also down 20% at pounds 20m, while store instalment credit
was 19% lower, despite previously surviving the downturn better than some sectors.