Agribank says it will consider alternative repayment arrangements for farmers and agricultural businesses affected by the foot-and-mouth disease outbreak, but will assess each case individually.
The announcement comes after the government confirmed an FMD outbreak on a commercial farm in the ||Kharas region on 23 September, prompting restrictions on the movement and marketing of cloven-hoofed animals and animal products.
Agricultural Bank of Namibia (Agribank) chief executive Robert Eiman says the restrictions could put pressure on farmers who are unable to sell or move livestock while still having to meet their financial obligations.
“The bank is deeply concerned about the impact that these restrictions may have on its clients,” Eiman says.
However, he cautions that the impact would differ between farmers and agricultural enterprises, meaning support would not automatically be extended to all affected clients.
“Therefore, any support to be extended to our clients will not follow a one-size-fits-all approach; each request will be assessed on a case-by-case basis, considering the client’s circumstances,” he says.
Agribank says affected clients should approach the bank to discuss how the outbreak and resulting restrictions have affected their operations.
The approach could provide some breathing room for farmers whose cash flow has been disrupted by the restrictions, particularly where livestock sales have been delayed or halted.
However, the bank did not specify what repayment options could be made available to affected borrowers, such as payment holidays, loan restructuring or extensions.
The bank says clients affected by the restrictions can approach their nearest or preferred Agribank branch for assistance.
