Agribank slashed interest rates

02 Oct 2013 11:50
WINDHOEK, 02 OCT (NAMPA) – The Agricultural Bank of Namibia (Agribank) on Wednesday reduced various lending interest rates to bring a relief to farmers, especially in this time of the prevailing drought in the country.
The adjustments are effective 01 September this year.
Agribank's Chief Executive Officer Leonard Iipumbu made the announcement.
Non-production loans to communal farmers are reduced with 1,5 per cent - from 8,50 per cent to 7 per cent.
The non-production loan is a facility to meet long-term needs in agriculture business for the purchase or repair of infrastructure and implements such as boreholes, fencing, windmills, dams, water pumps, combine harvesters, generators, hammer mills, mahangu threshers, and tractors.
“Agribank is mindful of what the drought of this magnitude can have on its balance sheet. But we are putting prudent measures in place to assist the farmers, while at the same time ensuring that the balance sheet of the bank is not eroded,” said Iipumbu.
The rates of short-term loans to commercial farmers are reduced from 8,50 per cent to 7.50 per cent.
These loans include agricultural businesses acquiring seeds, fertilizers, herbicides and pesticides, fuel and oil, transportation costs, wages, licks, and veterinary medicines.
The medium-term loans are also reduced from 9.25 per cent to 8.25 per cent.
These are loans to purchase livestock, water infrastructure, farm vehicles and tractors, implements, fencing boreholes and hammer-mills.
In addition, the bank reduced long-term loans from 9 per cent to 8 per cent, and such loans include the purchasing of farmland, loan consolidation, take-over of agricultural debts from other financial institutions and farm infrastructure, such as irrigation and bush encroachment.
Meanwhile, the loans for labourers' housing and post-settlement support remain unchanged at four per cent.