State-owned agricultural lender, Land Bank, said today, it was close to finalising a R3 billion liquidity and debt restructuring plan after it missed loan repayments this year.
The company said in a statement that the plan of its turnaround plan was being thrashed out with lenders and the National Treasury.
“Negotiations around the liquidity facility are ongoing, with the process anticipated to be finalized within the next fortnight, depending on negotiations with providers of this facility,” said the lender.
The bank is the country’s largest agricultural-focused lender. The financial difficulties of the bank became public in April when it defaulted on loans totalling R50 billion.
Land Bank provides financial services to the commercial farming sector and to agri-business and to make available new, appropriately designed financial products that would facilitate access to finance by new entrants to agriculture from historically disadvantaged backgrounds.
