As a Development Finance Institution, we certainly share the view that the farmers are in a difficult position. The prevailing drought has aggravated this season’s conditions following an equally challenging 2014 season.
The Land Bank has been closely monitoring the distress signals of our farmers in an attempt to proactively intervene and support. We are of the view that as the prevailing weather conditions continue, it is likely that more farmers will show early signs of distress.
Farmers genuinely need more state support right now. Land Bank has been proactive in preparing itself to be in a position to assist it clients by reviewing the loans of affected clients through Drought Relief intervention initiatives.
The above is targeted to all droughts declared areas and other affected areas will be confirmed by Land Bank Agricultural Economist Specialists (AES) report and supported by evidence of losses.
PURPOSE OF DROUGH RELIEF INTERVENTION
ELIGIBLE CLIENTS
CREDIT CRITERIA
All loans must comply with current Land Bank loan guidelines with respect to repayment ability, security and approved Credit Policy, exceptions will be considered on own merit.
INTEREST RATE
Interest rate or pricing will be based on client’s risk grade or determined by the appropriate approving committee.
RECOMMENDED OPTIONS AT THE DESCRETION OF THE LENDING COMMITTEE
Implementation of drought relief initiative will consider options as follows on a case by case:
We hope that the above comprehensive account of the Land Bank Drought Relief intervention initiative responds fully to the requirements of the question