The bank triggered a default on its debt last month when it was not able to honour its commitments due to liquidity challenges
The Land Bank has asked the state for a cash injection of R22bn — R5bn immediately and R17bn to follow shortly thereafter — after it triggered a default last month when it was not able to repay maturing loans.
It also emerged during the meeting from comments made by Land Bank chair Arthur Moloto that finance minister Tito Mboweni has indicated there is a need to revisit the issue of the Land Bank being 100% state-owned. Mogajane told MPs that the state-owned specialist lender to commercial and emerging farmers plays a major role in terms of food security, which would be negatively affected were the bank to collapse.Moloto stressed at Wednesday’s meeting that no amount of re-engineering of the bank’s balance sheet would cure its problems without a capital injection by the state as the shareholder.
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