Land Bank seeks urgent R3bn cash injection
Land Bank Ceo Ayanda Kanana says the bank has secured an emergency liquidity facility of about R3 billion as it battles to stay afloat.
The bank has asked the state for a total cash injection of R22bn after it triggered a default last month when it was not able to repay maturing loans
Kanana says the liquidity facility is aimed at assisting the bank in managing its pressure points.
"Servicing critical disbarments of the bank, restoration of funds to third parties and servicing the interest that is due to our partners.
"If we don't do these things it would be very difficult for the bank to have its stand and claw back these difficulties we are experiencing.”
He added that the bank will also look at ways to optimise its balance sheet.
"This exercise will look at the bank's mandate, look at the size of its balance sheet and try to restructure the balance sheet to make sure the bank is able to respond its mandate accordingly and that it is sized appropriately for the cash that it is able to generate.”
Kanana added that the bank’s turn-around strategy will be ready in two months’ time.
Kanana was addressing the Standing Committee on Appropriations in Parliament on Wednesday morning.