South Africa’s Land Bank has reached a deal with its lenders to resolve its debt default, the government announced on Friday.
The state-owned agricultural bank had defaulted on its debt in April 2020 and missed a restructuring deadline in March 2021. Since then, it had struggled to find a “liability solution” to emerge from default—until now.
“This agreement provides a foundation for the bank’s recovery and its crucial role in supporting South Africa’s economy, particularly the agricultural sector,” the government said in a statement on behalf of Land Bank.
A press conference is scheduled for Monday, Sept. 9, where the government will outline the agreement’s implications and the bank’s future plans.
