The Agricultural Bank of Namibia (Agribank) has announced that it will consider alternative repayment arrangements for farmers and agricultural businesses affected by the recent foot-and-mouth disease (FMD) outbreak in the country. The outbreak, confirmed on a commercial farm in the ||Kharas region on 23 September, has prompted restrictions on the movement and marketing of cloven-hoofed animals and animal products.
According to Agribank chief executive Robert Eiman, 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 of these restrictions on its clients, Eiman says. He notes that the impact will differ between farmers and agricultural enterprises.
Eiman cautions that support will not automatically be extended to all affected clients, as each case will be assessed individually. The bank will consider the client’s circumstances when evaluating requests for repayment relief. Affected clients are advised to 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 has not specified what repayment options will be made available to affected borrowers.
Possible repayment options that may be considered include payment holidays, loan restructuring or extensions. The bank encourages clients affected by the restrictions to approach their nearest or preferred Agribank branch for assistance. This will enable the bank to assess the impact of the outbreak on each client and determine the best course of action.
The FMD outbreak has resulted in significant restrictions on the movement and marketing of cloven-hoofed animals and animal products. These restrictions are aimed at preventing the spread of the disease, but they have also had a negative impact on the agricultural sector.
Agribank's move to consider alternative repayment arrangements for affected farmers and agricultural businesses is a welcome relief. The bank's decision to assess each case individually will ensure that support is provided to those who need it most.
Key points
- Agribank will assess each case individually to determine the best course of action for farmers and agricultural businesses affected by the FMD outbreak.
- The bank will consider alternative repayment arrangements, including possible payment holidays, loan restructuring or extensions.
- Affected clients are advised to approach their nearest or preferred Agribank branch for assistance.
