Agribank is set to launch a new debt relief initiative aimed at recovering more than N$900 million in non-performing loans (NPLs) from clients.
Chief Executive Officer Raphael Karuaihe said the bank’s total loan book stands at around N$3.2 billion, with a high proportion in arrears.
“If you look at our total loan book, it stands at around N$3.2 billion, of which more than N$900 million is in arrears. Compared to other development finance institutions in the region, our figures do not compare well. The proportion of non-performing loans (NPLs) is quite high,” he said.
The scheme is intended to encourage borrowers to come forward before legal action or asset confiscation becomes necessary.
Clients with arrears will qualify for penalty interest to be waived if they make a down payment of 20% or 25%, depending on whether their loans are in the pre-legal or legal category. Once the down payment is made, the remaining penalty interest is cancelled.
Participants will also be delisted from the credit bureau (ITC), restoring their ability to access finance from other institutions.
In addition, Agribank will provide voluntary advisory services to help clients manage their finances and ensure long-term sustainability.
Borrowers who successfully complete the programme may be invited to share their experiences publicly as encouragement to others.
Karuaihe rejected claims that the bank’s priority is to seize assets.
“I can only reiterate that we are a bank of the people, established by the government to serve. The negativity suggesting that we are confiscating farms is misplaced, confiscation is not our priority or primary goal. We only resort to that as an absolute last option,” he said.
Although not yet in effect, the programme will be rolled out once system preparations are finalised, according to the CEO.
