Adds background, particulars
Adds background, particulars
JOHANNESBURG, March 31 (Reuters) – South African cash-strapped Land and Agricultural Improvement Financial institution missed a March 31 deadline to conclude a debt restructuring plan with lenders, the state-owned firm stated on Wednesday.
In April 2020 the nation’s largest agricultural-focussed lender defaulted on some repayments on its 50 billion rand ($3.38 billion) debt, triggering credit score downgrades and fears of cross default on the debt of different state corporations.
The federal government stepped-in, giving the Land Financial institution bailout of three billion rand final 12 months and seven billion rand final month whereas the financial institution negotiated with a consortium of its lenders on a “legal responsibility answer” that will decided a brand new schedule of repayments.
The negotiations, which started in mid-2020, have stalled, with lenders complaining about lack of expertise and certainty within the proposals by the Land Financial institution.
“This date isn’t going to be met as a result of want for the financial institution and its lenders / funders to include a cloth change within the earlier model of the legal responsibility answer,” the Land Financial institution stated in an announcement.
“The revised model of the Legal responsibility Answer was necessitated by the goals set by the Shareholder with its affirmation of the Capital Injection,” the Land Financial institution stated, referring to the bailout situations set by the Nationwide Treasury.
The Land Financial institution didn’t give a brand new date for conclusion of the debt restructuring talks with lenders. It stated, nonetheless, it might have the ability to meet the 352 million rand cost to Commonplace Charted Financial institution following a courtroom order in December.
($1 = 14.7918 rand)
(Reporting by Mfuneko Toyana, enhancing by Louise Heavens)
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