Private sector borrowing tops Rs. 310 b in eight months

Wednesday, 21 October 2015 00:17 - - {{hitsCtrl.values.hits}}

21% growth or Rs. 64.7 b in August as opposed to Rs. 41 b in July

The country’s private sector has borrowed nearly Rs. 65 billion in August bringing the cumulative figure for the first eight months to Rs. 310.5 billion.

August growth was 21.3% and is higher in comparison to Rs. 40.9 billion borrowed in July, which saw a 21% growth as well year on year. End July private sector borrowing amounted to Rs. 246 billion.

Healthy growth in borrowing was owing to relatively low interest rate environment amidst low inflation.

“Some stability in short term interest rates was observed, and most market interest rates continued to remain at low levels,” the Central Bank said yesterday.

Growth in private sector credit saw a year-on-year growth of broad money (M2b) accelerate to 16.8% in August 2015 from 16.2% in the previous month.