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AfricaMoney | August 21, 2017

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Private sector credit up Rs 15.2 billion: Bank of Mauritius

Private sector credit up Rs 15.2 billion: Bank of Mauritius

The construction sector was one of the main beneficiaries of additional credit by commercial banks with loans granted to this sector standing at Rs 75.12 billion of the total credit pie of Rs 271.25 billion as at the end of December 2013. (Image: RBS)

Bank of Mauritius (BoM) announced that the total credit extended by commercial banks to the private sector stood at Rs 271.25 billion as at the end of December 2013.

This amount is exclusive of Rs 33.71 billion offered in the form of financial facilities to companies operating in the Global Business sector.

According to the monthly bulletin by the central bank titled ‘Sectorwise Distribution of Credit to the Private Sector December 2012 – December 2013’, the total value of bank credit has increased by a whopping Rs 15.2 billion over one year.

The construction sector was one of the main beneficiaries of additional credit by commercial banks. The data presented by the Bank of Mauritius shows that, at the end of last year, loans granted to this sector represented Rs 75.12 billion of the total pie against Rs 67.65 billion as on December 2012 and nearly Rs 72 billion in June 2013.

The tourist sector is another big beneficiary of bank credits. Its debts at the end of the year – including Hotels, tours operators and travel agents, hotel development certificate holders, restaurants, duty-free shops and others – amounted to Rs 48.76 billion against Rs 44.80 billion in December 2012.

The “Agriculture And Fishing” and “Manufacturing” sectors also saw an increase in credit, amounting to Rs 9 million and Rs 41 million respectively.

Credit to the “Agriculture and Fishing” sector stood at Rs 18.96 billion in December 2013 against Rs 18.06 billion in December 2012. The manufacturing sector saw a credit boost from Rs 18.85 billion to Rs 19.26 billion in December 2013 with a majority of the additional credits going to companies holding a certificate of export.

The debt of the “Financial and Business Services” sector witnessed an increase of Rs 1.37 billion, taking the total credit to the sector to Rs 26.83 billion at the end of last year.

On the other hand, credit to the trade sector has been lowered by Rs 2.38 billion, to stand at Rs 28.89 billion in December 2013.

Like the trade sector, credit to the the infrastructure sector has also been diminished to Rs 4.47 billion in December 2013 compared to Rs 4.94 billion in December 2012.

Finally, loans granted to individuals are estimated at Rs 29.03 billion in December 2013, and comparing this to the corresponding period of 2012, there has been an increase of Rs 5.43 billion.

Earlier this year, due to the increasing levels of non-performing loans, the Bank of Mauritius introduced new guidelines on sectoral credit concentration on asset growth vis-à-vis real GDP growth. The limits are applicable as from July 1 this year and should be calculated as a percentage of a bank’s total exposures to the specified sector to its total exposure to the private sector.

Thus, the tourism sector, which attracts 25% of all bank credit currently, is expected to reduce to 24% as from July 1, 2014 and to 22.5% as from July 1, 2015; the personal sector from 15.0% to 12.5% as from July 1, 2015; and finally the commercial, residential and land parcelling sector is expected to reduce to 12.5% as from July 1, 2013.

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