Namibian banks could reschedule loan repayments or restructure debt for farmers facing cash-flow pressure from the Foot-and-Mouth Disease (FMD) outbreak and livestock movement restrictions, the Bankers Association of Namibia (BAN) says.
The Association said movement restrictions could temporarily weaken some farmers’ ability to generate income and service debt, with banks monitoring the potential impact on agricultural borrowers and loan portfolios.
However, BAN stressed that any relief would not be automatic and would be determined by individual banks.
“Decisions regarding repayment arrangements, restructuring, relief measures or credit facilities remain the responsibility of individual member banks and will be assessed on a case-by-case basis in accordance with each institution’s policies, credit criteria and regulatory requirements,” BAN said.
Possible interventions could include repayment rescheduling, debt restructuring or other relief arrangements, depending on the financial circumstances of individual borrowers.
BAN Chief Executive Officer Dantagos Jimmy urged farmers experiencing financial difficulties to approach their banks early.
“The banking sector understands the pressures that affected farmers may be facing as a result of the FMD outbreak and livestock movement restrictions. Our member banks remain committed to engaging constructively with clients and considering appropriate support measures where circumstances warrant,” Jimmy said.
“Early engagement between farmers and their banks will be critical in finding practical and sustainable solutions that support both the agricultural sector and long-term financial stability.”
BAN said banks were also monitoring credit risks that could emerge if disruptions to agricultural production and livestock marketing channels persist.
The Association said it was too early to determine the full impact of the outbreak on agricultural loan portfolios.
Banks will continue engaging affected borrowers, regulators and agricultural industry stakeholders while assessing the financial impact of the outbreak, BAN said.
