Agribank Announces Drought Assistance to Its Clients
The Agricultural Bank of Namibia (Agribank) has revealed a N$104.6 million aid package to help clients affected by drought. They are also waiving N$83 million in penalty interest. This plan aims to support 1,134 of Agribank’s 2,634 clients. The Minister of Finance and Public Enterprises, Iipumbu Shaima, had mentioned these measures in his budget speech in February 2024.
Starting July 10, 2024, Agribank will provide installment relief and waive penalty interest for clients. Raphael Karuaihe, the CEO of Agribank, said this is to help clients and the bank through tough times. He emphasized the importance of supporting clients during this difficult period.
Currently, Agribank is dealing with N$1.2 billion in outstanding debts from clients. The drought aid package includes two main interventions: installment relief and penalty interest waivers. The installment relief is for Agribank clients with farmland and livestock loans. Clients who fell behind on payments between April 1, 2023, and March 31, 2024, will be eligible for this relief.
Qualifying clients will have their installments paid on time, and overdue accounts will be settled immediately. This initiative totals N$104.6 million.
Additionally, Agribank will waive about N$83 million in penalty interest for the financial year April 2024 to March 2025. This gesture is to help all clients who are behind on their payments.
