Rwanda: New authorized loans increased by 17.1 from 4.6 pct

The Central Bank of Rwanda has declared the growing of new authorised loans by 17.1 percent from 4.6 percent in the year before. According to the statistics of Central Bank, the local financial institutions increased their lending to the private sector in the previous year as the country's economic condition boosted with the reduction of risk from the borrowers.

The demand for loans in value terms augmented by 29.7 percent in the previous year from 10.8 percent in 2017, as revealed by the Bank's Monetary Policy Committee. The default rates or non-performing loans dropped to 6.4 per cent from 7.6 per cent, The New Times reported.

According to John Rwangombwa, Governor of National Bank of Rwanda, the rate at which financial institutions rejected loan applications was at 21.9 percent, down from 31 percent in 2018. The Bank attributes the positive outlook to the adjustment in its monetary policy as well as improving economic conditions. However, the sectors with the highest demand for loans include public works, communication and manufacturing.