THE flexible loan repayment plan Agribank extended to farmers in view of subdued economic activities in the country due to the Covid-19 pandemic has proven a success.
This approach resulted in the state-owned financial institution collecting N$365 million during the 2020/21 financial year, representing a 13% increase in loan repayments compared to the previous year, according to a statement issued by public relations officer Fillemon Nagonya yesterday.
“The accommodative strategy of the bank turns out to be helpful, especially during the current subdued economic environment, as exacerbated by the Covid-19 pandemic.
“Agribank has a mandate of lending money to individuals, business entities or financial intermediaries for the promotion of agriculture and related activities in the country,” Nangonya said.
He added that with this mandate, loan collection becomes a key priority area of the bank, to ensure financial sustainability.
The approach involves proactively communicating with clients for early problem and risk identification, flexible workout and repayment options and platforms, and close monitoring of loan performance as well as client support services, among others.
Over the years, farmers have benefited from the bank’s accommodative approach.
“Last year, Agribank extended Covid-19 relief measures to its clients for a period of one year, from May 2020 to May 2021.
“Consequently, 425 clients approached the institution and restructured their loans, in line with the extended relief measures, with a total outstanding balance of N$836 million,” the statement added.
Nangonya said Agribank will continue to assist farmers on a case-by-case basis to mitigate the impact of the ever-changing operating environment. He, therefore, called upon clients facing difficulties in servicing their loans to approach the bank with alternative repayment arrangements.
Email: matthew@namibian.com.na
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