By Kouthar Sambo
Early reports revealed that Land Bank repaid 60% of its debt following its default on its R45-billion debt in 2020 with its financial position made worse by bad business decisions and poor governance.
However, the Land Bank has reached a landmark agreement with its lenders to restructure its massive debt, a financial crisis deemed one of the most intricate and complex debt restructuring in the country’s economic history.
Speaking on VOC’s PM Drive show on Wednesday, an economist, Ulrich Joubert, said the Land Bank plays a vital role in agriculture.
“The farming community comes to the Lan Band and says they need to get their crops into the land/soil, but they may not have the cash flow, so they are borrowing the funds from the bank to put the crop into the soil,” outlined Joubert.
*Feel fre to listen furthe as he places the matter into perspevtive.
Photo: Pexels
