Togo: Microfinance loans up 38% in Q2 2021, y/y

Friday, 08 October 2021 18:02
Togo: Microfinance loans up 38% in Q2 2021, y/y

(Togo First) - Togolese microfinance institutions loaned CFA47 billion between April and June 2021. That is CFA10 billion more than they did in the quarter before, and 38% more than in Q2 2020. 

Similarly, loans by traditional banks stood at CFA217 billion in Q2 2021, up by 59% compared to the same quarter last year. Results for Q1 2021 were also satisfying, according to conclusions of the latest National Credit Council which was chaired by Minister-Counsellor Simfeitcheou Pré. 

In parallel, by the end of June 2021, banks and microfinance institutions were, respectively, able to recover more than half and a third of their outstanding debt. “All these encouraging evolutions helped increase lending to the economy by 4%, year-to-year, to stand at 1,376 billion at June 30, 2021; that is 30% of the GDP,” the ministry of finance and economy indicated. 

Though he lauded managers of banks and microfinance institutions for their results, Simfeitcheou Pré still urged them to lower their interest rates and lend more to very small and medium-sized businesses, explaining that the low financing of these enterprises “was impairing their contribution to wealth and job creation.” The Minister-Counsellor added that lending to agriculture and housing sectors should also be raised. 

“In the second quarter of 2021, new bank loans granted to the agriculture and housing sectors accounted for only 1.1% and 1.8%, respectively, of their total lending. I hope that during our next CNC sessions, we will be able to assess, in-depth, factors that prevent the financing of these two sectors that are conducive to inclusive growth,” said Simfeitcheou Pré. 

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