Banks carry E1.4bn in bad loans

MBABANE – Non-performing loans in Eswatini’s banking sector stood at E1.4 billion in July 2026, despite a monthly decline.

The 2026/27 Mid-Year Budget Review shows that non-performing loans declined by 2.7 per cent from June.

However, they remained 3.2 per cent higher than during the corresponding period last year.

The non-performing loan ratio fell by 0.2 percentage points to 6.6 per cent in July.

The figures indicate some improvement in loan performance during the month, although problem loans remained above the previous year’s level.

A non-performing loan generally refers to borrowing on which scheduled repayments have not been made for a specified period.

Such loans can affect the profitability of financial institutions and their willingness to extend additional credit.

Credit extended to the private sector reached E23.8 billion in July 2026.

This represented an increase of 0.2 per cent from the previous month and 11.4 per cent compared with July 2025.

Households and non-profit institutions serving households accounted for E10 billion of the total.

This followed monthly growth of 0.6 per cent.

Business credit stood at E12.9 billion, while lending to other sectors reached E963 million.

The ministry describes the growth in private-sector credit as a positive development.

Access to credit can support business investment and household expenditure.

The post Banks carry E1.4bn in bad loans appeared first on Times of Eswatini.