South Africa

Land Bank asks for an extra R10 billion support

Land Bank asks for an extra R10 billion support

Struggling state-owned agricultural lender Land Bank has asked for an extra R10 billion ($603 million) of government support over the next few years.

Land Bank, which has already had a R3 billion state cash injection in the 2020/21 fiscal year, has been in talks with creditors since it defaulted on its debt in April.

"We have proposed R7 billion in 2021/22, and R1 billion per annum for the following three financial years for development," Land Bank told Reuters in an emailed response to questions.

Land Bank is also planning an asset reduction programme, it said in a presentation to parliament this week.

State firms have been a long-term drain on the finances of Africa's most industrialised economy, requiring bailouts at a time of weak economic growth which have helped to tip its sovereign credit rating into "junk" status.

National Treasury said last month that the Post Office, public broadcaster SABC and state-controlled airport operator ACSA were seeking a combined R10 billion in bailouts.

Meanwhile, South African Airways is under a form of bankruptcy protection and may be granted further bailouts at a mid-term budget due this month.