Bank of Namibia offers farmers 24-month loan relief
Agricultural borrowers affected by drought and disease can restructure debt and defer payments for up to two years.
The Bank of Namibia introduced a 24-month relief framework to aid farmers and agricultural businesses impacted by drought and disease. The measures aim to ease loan repayment pressures for those facing reduced income and cash flow issues. Commercial banks must offer eligible borrowers options for debt restructuring, repayment deferrals, and recovery financing.
Under Determination BID-42, banks can grant a repayment holiday of up to 24 months on the principal of performing loans for working capital, term loans, and equipment financing held as of September 22, 2026. Banks are prohibited from charging penalty interest or additional fees for these holidays. A burden-sharing principle requires banks to ensure borrowers are not financially worse off regarding interest rates or credit costs.
The framework also allows for distressed loan restructuring, including extending repayment periods or reducing interest rates for those already struggling. New Agricultural Recovery Financing facilities may be provided on preferential terms. Borrowers receiving relief will continue to be reported as performing to credit bureaus, protecting their credit records.
Why it mattersFarmers and agricultural businesses in Namibia can access up to 24 months of relief on loan principal repayments due to drought and disease.