Industry

Agribank collects N.dollars 365 million in debt

Summary

Agribank recorded a 13 per cent increase in its debt collection for the financial year 2020/2021 which translated to N.dollars 365 million, compared to N.dollars 323 million for the previous year.Agribank public relations officer Fillemon Nangonya in a…

Agribank recorded a 13 per cent increase in its debt collection for the financial year 2020/2021 which translated to N.dollars 365 million, compared to N.dollars 323 million for the previous year.

Agribank public relations officer Fillemon Nangonya in an interview with Nampa on Friday said the bank's accommodative debt collection strategy which amongst others involves proactiveness in communicating with clients for early problem and risk identification, flexible repayment options and close monitoring of loan performances assisted the bank in loan collection from farmers.

According to Nangonya the accommodative strategy turned out to be helpful especially during the current subdued economic environment, which was exacerbated by the COVID-19 pandemic.

In a recent statement, Nangonya also indicated that Agribank has a mandate of lending money to individuals, business entities or financial intermediaries for the promotion of agriculture and related activities in the country.

'Given the said mandate, loan collection becomes a key priority area of the bank to ensure financial sustainability,' he added.

Nangonya further added that over the years, many farmers have benefited from this accommodative approach.

'Last year, Agribank extended COVID-19 relief measures to its clients for a period of one year, from May 2020 to May 2021. Consequently, 425 clients approached the Bank and restructured their loans, in line with the extended relief measures, with a total outstanding balance of N.dollars 836 million,' he said.

He also stated that the bank continues to assist farmers on a case-by-case basis to mitigate the impacts of the ever-changing operating environment and therefore calls upon clients facing difficulties in servicing their loans to proactively approach the bank with alternative repayment arrangements.

Source: The Namibian Press Agency