The Bank of Namibia (BoN) has directed commercial banks to grant loan repayment moratoriums of between one and 24 months to farmers and agricultural businesses affected by the foot-and-mouth disease (FMD) outbreak and El Niño-induced climatic conditions.
The directive, issued through Determination BID-42 on 30 October 2026, also allows banks to restructure existing loans and extend additional credit facilities to qualifying borrowers facing financial difficulties.
Bank of Namibia Director of Strategic Communications and International Relations Kazembire Zemburuka said the intervention followed concerns raised during engagements between the banking and agricultural sectors over the financial impact of the outbreak and adverse climatic conditions.
“The determination seeks to provide relief to borrowers in the agricultural sector affected by the FMD outbreak and El Niño-induced climatic conditions,” the central bank said.
Under the determination, banks are required to provide repayment moratoriums ranging from one to 24 months, with the duration of relief determined by each borrower’s financial circumstances and repayment capacity.
Zemburuka said the relief would extend beyond farmers to businesses operating directly or indirectly within the agricultural value chain.
“It also extends to businesses in other sectors whose income, operations or cash flows are materially dependent on agricultural activity and have been adversely affected,” he said.
The central bank said banks must assess individual applications based on the financial position of borrowers and the extent to which their repayment capacity has been affected.
In addition to repayment moratoriums, banks may restructure existing loans to make instalments more manageable and improve borrowers’ ability to meet their financial obligations.
However, the central bank clarified that loan restructuring would not automatically suspend interest charges.
“Restructured loans will continue to accrue interest at the contractual interest rate, unless otherwise agreed in writing between the banking institution and the borrower,” the bank said.
Affected borrowers may also qualify for additional credit facilities, subject to their repayment capacity and individual risk profiles.
The determination further provides credit reporting relief for qualifying borrowers, requiring banks to report clients benefiting from the intervention as performing rather than non-performing during the applicable period.
However, this protection is subject to existing prudential requirements under BID-2, particularly where a borrower’s credit quality deteriorates materially.
The central bank said the measure was intended to prevent borrowers from being unfairly penalised through their credit records while receiving financial relief.
Banks that reject applications for relief must provide affected borrowers with written reasons for their decisions.
Borrowers who are dissatisfied with the outcome may lodge complaints through their bank’s internal complaints process or other applicable dispute-resolution mechanisms.
“The intervention provides regulatory flexibility to banking institutions to support affected borrowers,” the bank said.
Zemburuka said the measures were intended to protect the agricultural sector from further financial distress while limiting the potential impact of the FMD outbreak and adverse weather conditions on the banking system.
“Agriculture remains a critical contributor to employment, food security and economic growth,” he said.
The central bank said the intervention was aimed at supporting the continued viability of agricultural businesses, protecting livelihoods and mitigating risks to the broader financial system.
