New land loans put on hold

AGRIBANK says it will not grant new loans for the purchase of agricultural land until it has cleared a backlog of N$17,2 million in loans.

These loans were already approved in 2004 but still have to be paid out. In a statement issued by the agricultural bank’s CEO, Leonard Iipumbu, at the end of last week, Agribank said it would stick to a board resolution not to entertain new loans as its annual budget had been exhausted.Despite Government lifting a moratorium on affirmative action loans a year ago, the bank says it has been unable to allocate more funds because of the huge backlog in approved loans which it has been unable to pay out.Of a backlog of N$42,1 million in 2005, N$24,98 million has now been paid out.Regan Mwazi, Agribank’s Manager of Marketing and Communication, said on Friday that loans of N$24,9 million were paid out to 47 clients, 13 of them affirmative action beneficiaries who had borrowed N$15,4 million.Agribank clients received a further N$11,5 million for livestock, improvements, labourers’ housing and crop production.Mwazi said the bank planned to pay out the backlog of N$17,2 million in loans before the end of the year.The bank is currently faced with processing 250 new loan applications.”Therefore it was prudent for the bank to concentrate its efforts and resources on clearing the backlog before entertaining new loans,” Iipumbu said in a statement.The bank said it would focus its attention on loaning money to improve production on already purchased land.Iipumbu said he wanted the public to know that the bank would continue to place emphasis and priority on clearing the backlog and considering production loans.Once this was done, the bank would inform the public when it was ready to process new loans.Earlier this year, the bank said it was finding it difficult to access funds that would allow it to loan more and had to rely on its own cash flow to do so.In a statement issued by the agricultural bank’s CEO, Leonard Iipumbu, at the end of last week, Agribank said it would stick to a board resolution not to entertain new loans as its annual budget had been exhausted.Despite Government lifting a moratorium on affirmative action loans a year ago, the bank says it has been unable to allocate more funds because of the huge backlog in approved loans which it has been unable to pay out. Of a backlog of N$42,1 million in 2005, N$24,98 million has now been paid out.Regan Mwazi, Agribank’s Manager of Marketing and Communication, said on Friday that loans of N$24,9 million were paid out to 47 clients, 13 of them affirmative action beneficiaries who had borrowed N$15,4 million.Agribank clients received a further N$11,5 million for livestock, improvements, labourers’ housing and crop production.Mwazi said the bank planned to pay out the backlog of N$17,2 million in loans before the end of the year.The bank is currently faced with processing 250 new loan applications.”Therefore it was prudent for the bank to concentrate its efforts and resources on clearing the backlog before entertaining new loans,” Iipumbu said in a statement.The bank said it would focus its attention on loaning money to improve production on already purchased land.Iipumbu said he wanted the public to know that the bank would continue to place emphasis and priority on clearing the backlog and considering production loans.Once this was done, the bank would inform the public when it was ready to process new loans.Earlier this year, the bank said it was finding it difficult to access funds that would allow it to loan more and had to rely on its own cash flow to do so.