Domestic banking system credit reported an annual increase of 17.8 percent in December last year compared to 7.1 percent in December of the previous year, representing both private sector and central government credit.
According to the Economic Bulletin of the Bank of Tanzania (BoT) for the quarter ended December last year, the credit provided to the central government was through government securities auctions.
Private sector credit continues to grow positively, growing by 596bn/-, equal to 3.0 percent annual expansion, compared to 11.1 percent in the same period in 2019.
The subdued growth of private sector lending was partly due to the global influence of Covid-19, which affected certain operations, especially tourism-related businesses.
Private sector lending growth has become more prevalent in personal operations, mostly used for micro, small and medium-sized enterprises; transport and communication; and mining and quarrying.
Personal loan-related operations accounted for the highest proportion of the total outstanding credit, followed by industrial, retail and agricultural activities, which accounted for 34.3%, 15.4%, 9.5% and 8.7% of the total outstanding credit.
Money supply development moved in parallel with accommodative monetary policy during the quarter ending December 2020, considering adverse effects on the best betting sites of Tanzaniachallenges raised by Covid-19.
In December 2019, the increased large supply of money rose by 5.7 percent to 29.91tri/-from TZS 28.31tri/-. Broad cash rose from 21.28tri/- at an annual rate of 8.2 percent to 23.01tri/-.
Lending in the private sector continues to grow positively, rising by 596bn/-, equivalent to 3.0 percent annual increase, compared to 11.1 percent in 2019 over the same period.
The suppressed growth of lending to the private sector was partly due to Covid-19’s global influence, which affected some operations, especially tourism-related businesses.
In personal activities, mainly used for micro, small and medium-sized enterprises; transportation and communication; and mining and quarrying, private sector lending growth has become more prevalent.