Commercial Real Estate Top List of Bad Loans – Central Bank of Rwanda

In Rwanda, the Central Bank has released the Monetary Policy and Financial Stability Statement which shows that commercial properties lead the list of sectors with non-performing loans at 19.1%. According to Kasai Ndahiriwe, the Director of the Monetary Policy Department, the highest non-performing loan ratio is a result of the inability of most commercial buildings that could not collect rentals during the COVID19 lockdowns as well as those who lost tenants during and after it.

The non-performing loan ratio increased marginally at the end of 2021 from 4.5% to 4.6% against the 2020 benchmark of 5%, while the outstanding NPLs amount increased 19% from 133 billion Rwandan francs to 158 billion francs. On the other hand, the banking sector saw a 34% increase in provisions for bad debt to 189.5 billion francs in December 2021 from 141.3 billion francs in 2020. The industry’s aggregate net profit however grew by 53.6% to 125 billion francs, with the microfinance sector growing from 5.1 billion francs in 2020 to 8 billion the following year. The insurance sector made a net profit of 63.6 billion francs, an increase from 52.4 billion in the previous year.

Your Friends Also Read:  Namibia Launches Sovereign Wealth Fund For Economic Growth

Earlier, the growth forecast projected by economists for Rwanda’s 2022 had declined, owing to inflation and unemployment. It was previously expected that the economy will grow by 7% but will most likely hover around 5%.

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.



Leave a Reply

Previous Article
Hotel Rwanda: Appeal Court Affirms Rusesabagina's 25-Year Jail Term

Appeal Court Rejects Life Imprisonment for ‘Hotel Rwanda’ Hero

Next Article
Nigeria’s apex bank to offer seven-year loans to youth corps members

C.B.N Urge Nigerians to Shun Unlicensed Financial Operators

Related Posts
Powered by Live Score & Live Score App