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The Agricultural Bank of Namibia announced yesterday that it will sell two farms Friday in the Otjozondjupa region.
The auctions follow an announcement last week by the bank that it went from a soft approach to a debtors.
In a press release, the bank's general manager, Sakaria Nghikembua, said that it was a warning to other customers who are late to settle their debts before it's too much late
. he will take back the land and will auction off farms owned by defaulting debtors who collectively owed about N $ 500 million and failed to meet the requirements of the bank and debt collectors to pay their arrears . The bank also said that some farmers had not paid a dime on their debts for five years
Agribank launched a debt collection campaign last year with the aim of recovering about half a year. billion dollars owed by farmers. The last move is part of the bank's decision to take a more aggressive approach to debt collection. Nghikembua said the two farms had already been advertised in local media.
"This is the last resort for us.There is no choice but to run on the auction.The only thing that can stop the process now is the payment of arrears by customers before the date of auction.In the absence of this, the process will go to the end, "he said.
He added that these two auctions should not be considered in isolation, but as part of a continuing series, emphasizing that the bank will scrupulously follow the same path.
Nghikembua said the bank had not only steered its internal structures to implement recovery strategies more quickly than in the past, but also strengthened its collection efforts by recently adding new law firm to his legal recovery panel. Last week, the bank also announced that defaulting customers will be listed on credit bureaus.
"If a customer waits until they are listed or until we have a judgment against them, it will be too late.The best is to avoid these two situations by making repayment commitments and doing everything in our power to honor these commitments, "he said
The bank has nearly 6,000 customers with a book value of $ 2.4 billion Namibian. The government funds some loans from Agribank through the Ministry of Finance.
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