Namibia relaxes home loan curbs to stimulate economy

WINDHOEK, Nov. 8 (Xinhua) -- Namibia's central bank announced on Wednesday that it is further easing restrictions on home loans in a bid to revive the country's long-depressed housing and construction sectors.

The Bank of Namibia (BoN) said in a statement that a mortgage loan for a second residential property no longer requires any deposit, while mortgage loans for third and subsequent residential properties only require a 10 percent deposit.

Leonie Dunn, deputy governor of the BoN, said recent economic conditions and shifts in the Namibian property market prompted these changes.

"These regulations mirror recent economic conditions which require a further relaxation while safeguarding financial stability. They are designed to foster investment in the property sector, generate job opportunities, and make a positive contribution to economic growth and recovery," Dunn said.

The Namibian construction sector's contribution to GDP decreased to 290.60 million U.S. dollars in the second quarter of 2023 from 623.10 million dollars in the first quarter, according to the Namibia Statistics Agency.