N$104 million loss for AgriBank

THE Agricultural Bank recorded a big loss of N$103,8 million last year, according to its latest annual report.

“The net loss of N$104 million may come as a shock to many who believed AgriBank to make profits for the financial year ending March 31 2006,” Board Chairman Guenther Stier said in the report, which was tabled in the National Assembly on Thursday. AgriBank came to the rescue of the grape industry along the Orange River, which had not performed according to expectations during the year under review.”Without AgriBank’s support, the grape industry would probably not have survived,” Stier stated frankly.”The Bank decided not to take legal action for default against an industry which is the major employer in the south of Namibia, and an industry which is a real factor in the implementation of the Government’s Green Scheme project.”The loans forwarded to the grape growers would not be written off,” Stier emphasised.Between 2004 and March 2006, AgriBank lost N$253 million on loans and advances, including loans that were written off.These loans accrued before 2004.In March 2005, AgriBank made a small profit of N$9,1 million.Stier was confident that the outstanding loans would be recovered in due course.The bank’s Managing Director, Leonard Ipumbu, noted that monthly loan repayments had increased from between N$4 million and N$7 million to between N$12 million and N$15 million.AgriBank now also offers loans for aquaculture projects, eco-tourism, the purchase of game, the erection of game-proof fences and for the renovation and construction of guest accommodation facilities.AgriBank has been undergoing a restructuring exercise over the last few months.For this purpose, Ipumbu dismissed virtually the entire workforce but offered employees a chance to reapply for their jobs.This unusual step, a first in Namibia, was protested by labour unions.AgriBank came to the rescue of the grape industry along the Orange River, which had not performed according to expectations during the year under review.”Without AgriBank’s support, the grape industry would probably not have survived,” Stier stated frankly.”The Bank decided not to take legal action for default against an industry which is the major employer in the south of Namibia, and an industry which is a real factor in the implementation of the Government’s Green Scheme project.”The loans forwarded to the grape growers would not be written off,” Stier emphasised.Between 2004 and March 2006, AgriBank lost N$253 million on loans and advances, including loans that were written off. These loans accrued before 2004.In March 2005, AgriBank made a small profit of N$9,1 million.Stier was confident that the outstanding loans would be recovered in due course.The bank’s Managing Director, Leonard Ipumbu, noted that monthly loan repayments had increased from between N$4 million and N$7 million to between N$12 million and N$15 million.AgriBank now also offers loans for aquaculture projects, eco-tourism, the purchase of game, the erection of game-proof fences and for the renovation and construction of guest accommodation facilities.AgriBank has been undergoing a restructuring exercise over the last few months.For this purpose, Ipumbu dismissed virtually the entire workforce but offered employees a chance to reapply for their jobs.This unusual step, a first in Namibia, was protested by labour unions.