Number of Gambians defaulting in repaying loans increased significantly

The number of people who took various kinds of loan from the banks in The Gambia and failed to pay has increased considerably in 2013, the Central Bank of The Gambia (CBG) says in a report.

The ratio of Non-performing loans (NPLs), loans given to customers which they failed to pay back, increased significantly, from 12.1 per cent in 2012 to 19 per cent in 2013, the quarterly report, released on Friday, of the Monetary Policy Committee of the CBG states.

The intense competition in the banking industry has left commercial banks in the country rocking the boat of bad debts.  This is due to unprecedented increased in lending to both the public and private sectors, which unfortunately led to increased risks of NPLs.

Vulnerable to bad debts

Monies from foreign donors to Gambia government reduced significantly in 2013

US Dollar notes

Grants to The Gambia, moneys donated by multinational organisations and foreign governments, had reduced by more than D1 billion (about US$ 2,632,000) in 2013, statistics from Central Bank of The Gambia (CBG) has indicates.  

The Monetary Policy Committee (MPC) of the CBG states in its quarterly report, released on Friday, that grants (to The Gambia) declined significantly from D1.8 billion (US$  5, 260, 000) in 2012 to D725.1 million (US$ 2,000,000) in 2013.

The Committee has not given any reason for this negative development.  However, in 2013, President Jammeh abruptly withdrew The Gambia from the Commonwealth, and also cut diplomatic relations with Taiwan; an organization, and a country that used to donate to the country.