Land Bank reaches debt deal with lenders, but a much bigger challenge awaits
Although the Land Bank has struck a long overdue deal with lenders to pay them the billions of rands they are owed, the state-owned lender is not yet out of the woods.
Source: 123RF.
That’s at least considering the Land Bank’s financial health, which remains dicey and undermines its ability to fulfil the mandate of providing loans to established and emerging farmers.
The Land Bank has entered into a settlement deal with lenders after defaulting on debt repayment worth R45bn four years ago. The Land Bank became the first state-owned entity (SOE) to default on debt repayments to SA-based and international lenders, triggering financial support worth R10bn to the company by the National Treasury, or the taxpayer.
Read the full article by Ray Mahlaka at Daily Maverick.