Agri SA has raised concerns about the Land Bank’s prospects to continue as a going concern following the bank’s admission about its reduced ability to support the sector and service its existing debt.
Land Bank working to get out of debt default
By Edward West
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CAPE TOWN - The Land and Agriculture Development Bank of South Africa said yesterday a R7 billion equity appropriation announced in the February 24, 2021 Budget would be applied to bring the bank out of a default situation.
“Land Bank continues to work with all of its lenders towards a Liability Solution that meets any conditions attached to this R7bn equity appropriation, and to bring Land Bank out of its event of default situation,” a statement said.
The proposed Liability Solution would not require the Land Bank to have a credit rating and the credit rating service conducted through Moody’s was terminated. The bank’s listed notes remained suspended until further notice. - Edward West