WAEMU: LENDING RATES DOWN 171 BASIS POINTS : Orishas-finance

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WAEMU: LENDING RATES DOWN 171 BASIS POINTS

14/05/2020

Source : APS

Categories: General Information

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Dakar, May 14 (APS) - Lending rates in WAEMU countries have fallen by about 171 basis points over the past decade, according to a new report by the Central Bank of West African States (BCEAO).

From 8.39% in 2010, the cost of credit in WAEMU countries fell to 6.68% in 2019, after falling to 6.79% in 2018, says the Report on Bank Conditions, a document that analyses the evolution of debit and creditor conditions applied by EU banks.

The decline in the average borrowing rate concerns "almost all countries (Guinea Bissau, -75, 3), Togo (-47.5), Benin (47.2), Mali (17.3), Burkina (-16.4) and Senegal (-8.9)".

Increase is observed in Niger (+16.4), and relative stability in Côte d'Ivoire.

The report states that "bank customers have benefited from favourable credit conditions as a whole". Cooperatives and village groups, individuals, corporations, state-owned enterprises and private enterprises are the main beneficiaries.

However, there was a "tightening of conditions for sole proprietorships (+32%)".

The supply of credit has remained in the upward momentum observed in recent years, with growth of 4.4% compared to 2018. Total term deposits increased from 7,161.7 billion in 2018 to 7,469.6 billion in 2019.

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