Agribank debt collecting positive
WINDHOEK, 18 MAR (NAMPA) – The Agricultural Bank of Namibia (Agribank) has appointed RedForce and the United Africa Group (UAG) to assist in collecting N.dollars 500 million owed to it by farmers.
The announcement was made in a statement availed to Nampa on Friday, after the bank had a stakeholder engagement meeting attended by representatives of the Namibia Emerging Commercial Farmers Union (NECFU) and Namibia Agricultural Union (NAU) earlier this week.
The collection of arrears that commenced last month is part of Agribank’s new strategic plan, which will help guide the operations of the bank in the next five years.
The bank’s Chief Executive Officer, Sakaria Nghikembua said response to the debt collection has been positive as many clients contacted either the Agribank offices or those of the contracted debt collecting agents to make arrangements, whilst others have made down-payments on their arrears.
He said they have commitments-to-pay from customers in excess of N.dollars 20 million.
“This amount increases daily as new repayment agreements are made with customers… We are confident that we will see good repayment inflows in two to three months’ time,” he said.
Nghikembua said the Agribank can only be sustainable if money owed to it is repaid and the bank is enabled to further lend money and have a bigger developmental impact as per its mandate.
He said clients who refuse to cooperate with the duly appointed debt collectors are doing so at their own risk, adding that the agents are acting on behalf of the bank.
“We are fully aware that clients will not necessarily be able to repay all their arrears at once, nor do we expect them to. What we do expect is that suitable arrangements are made to settle the debts over a reasonable period of time,” he said.