Land Bank might get another bailout in 2021

South Africa’s state-owned Land Bank might get another bailout this year, after the National Treasury stated it was considering the bank’s application for a R7 billion ($463 million) equity injection. Earlier, the national government already gave the agriculture-focused lender R3 billion of equity in 2020 after it defaulted on its debt in April.

Land Bank is one of several struggling state-owned companies that have required government handouts, straining the public purse at a time of weak economic growth and leading to credit rating downgrades into “junk” status.

It said last week that it was working on a new debt restructuring plan after the Treasury declined to provide a partial government guarantee.

More information on the R7 billion required by the bank would be made available during the 2021 Budget, which is due in February.

Source: reuters.com

Source: Fresh Plaza

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