The Bank of Namibia has announced the maintenance of the repo rate at 7.75 percent, a decision coming on the heels of the recent drop in local fuel prices.

This move is expected to bring a sigh of relief across the nation amid economic challenges.

Central bank Governor Johannes !Gawaxab, at the year's sixth Monetary Policy announcement, explained the decision as based on supporting the domestic economy and safeguarding the one-on-one peg between the Namibian dollar and the South African Rand.

The Bank of Namibia (BoN) has released amended regulations on loan-to-value ratios to stimulate property investment and support economic recovery.

Under the new regulations, the loan-to-value (LTV) ratios for additional property purchases have been further relaxed.

Borrowers seeking a mortgage loan for a second residential property will no longer need to provide a deposit.

For third and subsequent residential properties, a 10% deposit is now required.

NASRIA has embarked on a new venture that expands its Credit Guarantee Scheme, an innovative insurance product that aims to empower SMEs.

The government, through a smart partnership with the Bank of Namibia, the Development Bank of Namibia, the Namibia Special Risks Insurance Association, and participating financial institutions, has structured a Credit Guarantee Scheme facility that will provide 60% collateral cover for a viable SME business loan.

The credit guarantee scheme is an innovative insurance product aimed at capacitating both existing and new SMEs.

In cooperation with the UN in Namibia, the Bank of Namibia, the Ministries of Labour, Industrial Relations, Employment Creation, Industrialization, and Trade intend to conduct a study to comprehend the informal economy and its diversity, pinpoint solutions for related problems, and highlight opportunities for interventions.

Informal employment in Namibia has significant implications for people, enterprises, and the country's economy and social development.

The Bank of Namibia (BoN) has suspended the authorization of Trustco Bank Namibia to operate as a banking institution.

The BoN said in a statement that the decision is in accordance with the bank's Act and follows consultations with the Minister of Finance and Public Enterprises.

Governor Johannes !Gawaxab noted that the suspension is temporary and is subject to Trustco Bank rectifying certain stipulated instances of non-compliance within six months.

The repo rate will remain unchanged at 7.75% for the upcoming two months.

This announcement was made by Bank of Namibia (BoN) Governor Johannes !Gawaxab during the monetary policy declaration at Oshakati.

The Bank's Monetary Policy Committee held its bi-monthly meeting on the 14th and 15th of August this year and decided on the appropriate monetary policy stance to be implemented over the next two months.

The decision was taken to uphold the stability of the peg between the Namibian dollar and the South African Rand and to bolster the domestic economy.

The Bank of Namibia is hosting a two-day economic reporting workshop for northern journalists to enhance their capacity to report accurately and effectively on economic issues.

In her welcoming remarks, the Bank's Branch Manager at Oshakati, Moudi Hangula, says that by hosting such a workshop, the bank is also striving to promote transparency and open dialogue with the media countrywide.

Remittances, or money transferred by Namibians working abroad, make a significant contribution to the country's economy and foreign currency earnings.

According to the Bank of Namibia, remittance inflows in the country are estimated to be over N$1.5 billion annually.

In Namibia, remittance inflows mostly come from Canada, the United States, and parts of Europe such as the United Kingdom, contributing about 0.9% to the Gross Domestic Product.

The Governor of the Bank of Namibia, Johannes !Gawaxab, says the persistently high cost of living is a cause for concern that puts ordinary Namibians under pressure.

!Gawaxab advised that central banks combat inflation that disproportionately affects vulnerable members of society.

The Bank of Namibia recently hosted the central bank Governors of the Common Monetary Area, South Africa, Lesotho, and Eswatini.

The meeting was aimed at assessing the state of the economies and the progress made thus far on the implementation of the Common Monetary Area strategy.

The Bank of Namibia (BoN) wants credit extension decisions to be taken locally, a move it says is not against foreign investment.

The Bank's Governor, Johannes !Gawaxab says the amount of credit extended to locals currently, especially Small and Medium Enterprises, is quite low.

The central bank is thus proposing amendments to the law to enable it to authorise Namibians to make credit extension decisions.