Namibia’s Bank Windhoek has reduced its prime lending rate to a record low of 7.75 percent, making it the country’s first lender to do so following the central bank’s recent decision to cut the repo rate.
Diederik Kruger, head of funding and liquidity management at Bank Windhoek, said that while the possibility of more cuts cannot be ruled out at this point, the benefit from the sharp cuts will gradually alleviate the debt burden of clients.
“This should see some recovery in economic activity,” he said.
The interest rate changes will be effective from June 23, 2020.
Namibia’s second biggest bank in terms of advances also announced a reduction of its mortgage lending rate from 9 percent to 8.75 percent.
On Wednesday, June 17th, the country’s central bank announced the decision to decrease the repurchase rate by 25 basis points to 4 percent.