Africa-Press – South-Africa. Following years of difficult negotiations the Land Bank has reached a landmark agreement with its lenders to restructure its massive debt.
The specialist agricultural bank defaulted on its R45-billion debt in 2020 with its financial position made worse by bad business decisions and poor governance.
Government has announced a solution bringing to a close one of the most intricate and extended debt restructuring efforts in the country’s financial history.
In May 2020, the bank started a debt restructuring process referred to as a liability solution to cure the event of default. Four versions of the liability solution have been considered and rejected by lenders since then.
The fifth liability solution now agreed on will see the biggest lender to farmers continue repayments of its debt to more than 50 local and international lenders.
Since the debt default the bank has repaid over 60% of its debt.
This means the bank’s loan book has since been reduced to R17 billion.
The deal which will take effect in a week’s time also paves the way for the SOEs turnaround strategy.
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