Banks monitor FMD impact on farmers
The banking sector is monitoring the financial impact of the foot-and-mouth disease (FMD) outbreak and livestock movement restrictions on farmers and agricultural businesses.
The Bankers Association of Namibia (BAN) said affected farmers facing cash-flow pressures should approach their banks early to discuss possible support.
Depending on individual circumstances, banks may consider measures such as repayment rescheduling, loan restructuring or other relief arrangements, subject to their credit assessments and regulatory requirements.
“Early engagement between farmers and their banks will be critical in finding practical and sustainable solutions that support both the agricultural sector and long-term financial stability,” said Dantagos Jimmy, chief executive officer of the Bankers Association of Namibia.
The association said movement restrictions could place temporary pressure on farmers’ cash flows and their ability to service debt, while banks were assessing the potential impact on agricultural borrowers.
Banks are also monitoring the broader credit risks arising from prolonged disruptions to livestock production, marketing and other agricultural channels.
However, BAN said it was too early to determine the full impact of the outbreak on the agricultural sector or agricultural loan portfolios.
The association stressed that any repayment relief or restructuring would be decided by individual banks on a case-by-case basis, taking into account each borrower’s circumstances, credit criteria and regulatory requirements.
Jimmy said banks remained committed to engaging with affected clients and considering appropriate support measures where circumstances warranted.
The sector would continue working with regulators, industry stakeholders and farmers to support the resilience of agriculture and Namibia’s rural economy, BAN said.
