Land and Development Bank in a bid to restructure debt

The bank defaulted on loans of R50-billion last month. Courtesy #DStv403

JOHANNESBURG - The state-owned Land and Development Bank of South Africa says it's negotiating with a consortium of lenders to try to restructure its debt.

The land bank told Parliament on Wednesday that it is no longer able to accept new credit applications, nor make payments to any of its creditors.

The bank defaulted on loans of R50-billion last month.

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About R5.5-billion of its debt is guaranteed by the government but National Treasury says it cannot afford to recapitalise the bank as it fights the economic fallout of the coronavirus pandemic.

The bank is a crucial developmental tool as it is the country's largest agricultural-focussed lender.

Source
eNCA