Agribank arrears stand at N$500 million
Bank's sustainability at risk
Auctioning the farms of loan defaulters would be a last resort for the Agricultural Bank of Namibia, whose liquidity is at risk.
Agribank says its arrears are currently standing at half-a-billion, a situation that could threaten the sustainability of the bank.
Despite the large amounts of money owed to the agricultural lender, it still does not see farm auctions as a viable option, insisting rather that it is a measure of last resort.
Several previously disadvantaged farmers had approached Namibian Sun, accusing it of reversing the gains made to buy farm land from previously advantaged farmers.
“Auctions should not be seen in isolation but as part of an ongoing series of arrear collections initiatives, which stands at more than N$500 million, a situation that threatens the liquidity and sustainability of the Bank,” bank spokesperson Rino Muranda said.
Farmers in arrears with the bank were encouraged to make plans to settle outstanding debts owed to it or risk having their farms repossessed, Muranda said.
“It is important to highlight that if clients persistently fail to honour their loan repayment commitments, the Bank will dutifully follow this route as is required and expected of any responsible lender,” he said.
“We therefore appeal to clients to act before it is too late and not wait until they are listed or until we have a judgement against them. The best is to avoid these situations by making repayment arrangements and making every effort to honour such commitments,” Muranda added.
He denied allegations that the auctions were set up such to ensure previously disadvantaged Namibians would benefit from the auctions, saying it was done in a public open process.
“Auctions are in the public domain and all prospective farm owners irrespective of their race or ethnic origin are free to bid at such auctions, hence the Bank does not have control over who becomes successful bidders at such platforms,” Muranda said.
The farms he added are also first offered to government to advance land redistribution before it was auctioned onto willing buyers on the market.
“It is however important to underscore that even if a farm is sold on auction, the deputy sheriff of the court still has to offer it to the Ministry of Agriculture and Land Reform for the latter to exercise its pre-emptive option to purchase,” Muranda said.
Despite the large amounts of money owed to the agricultural lender, it still does not see farm auctions as a viable option, insisting rather that it is a measure of last resort.
Several previously disadvantaged farmers had approached Namibian Sun, accusing it of reversing the gains made to buy farm land from previously advantaged farmers.
“Auctions should not be seen in isolation but as part of an ongoing series of arrear collections initiatives, which stands at more than N$500 million, a situation that threatens the liquidity and sustainability of the Bank,” bank spokesperson Rino Muranda said.
Farmers in arrears with the bank were encouraged to make plans to settle outstanding debts owed to it or risk having their farms repossessed, Muranda said.
“It is important to highlight that if clients persistently fail to honour their loan repayment commitments, the Bank will dutifully follow this route as is required and expected of any responsible lender,” he said.
“We therefore appeal to clients to act before it is too late and not wait until they are listed or until we have a judgement against them. The best is to avoid these situations by making repayment arrangements and making every effort to honour such commitments,” Muranda added.
He denied allegations that the auctions were set up such to ensure previously disadvantaged Namibians would benefit from the auctions, saying it was done in a public open process.
“Auctions are in the public domain and all prospective farm owners irrespective of their race or ethnic origin are free to bid at such auctions, hence the Bank does not have control over who becomes successful bidders at such platforms,” Muranda said.
The farms he added are also first offered to government to advance land redistribution before it was auctioned onto willing buyers on the market.
“It is however important to underscore that even if a farm is sold on auction, the deputy sheriff of the court still has to offer it to the Ministry of Agriculture and Land Reform for the latter to exercise its pre-emptive option to purchase,” Muranda said.
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