ESP to boost banks� liquidity � IMF

ESP projects are expected to inject up to P3 billion into the economy in the next two years PIC: MORERI SEJAKGOMO
ESP projects are expected to inject up to P3 billion into the economy in the next two years PIC: MORERI SEJAKGOMO

The International Monetary Fund (IMF) believes that the drawdown on government deposits to stimulate the economy is expected to help banks liquidity positions and consequently boost credit growth.

The institution’s optimism, however, seems to go against the current outlook, with interest rates being at record low levels since 2015 and credit growth declining as commercial banks adopted a cautious approach to lending in the context of slow growth in customer deposits and increasing competition to raise funds.

In a Botswana report published recently, the IMF said the change in fiscal policy is expected to enhance monetary policy transmission by releasing commercial banks’ liquidity constraints through increased deposits in this way supporting domestic demand.

Editor's Comment
UDC should deliver on promises

President Duma Boko and his government must now hit the ground running to deliver on their promises and meet the high expectations of Batswana. The UDC has pledged to foster a deliberative democracy, where open dialogue and continuous conversations are encouraged. This approach will allow different viewpoints to be heard and strengthen the ideas that shape our nation. The introduction of the long-awaited Freedom of Information Act (FOIA) is a...

Have a Story? Send Us a tip
arrow up