File: Land Bank is a specialist bank providing financial services to the commercial farming sector and other agricultural businesses. (Land Bank)
JOHANNESBURG - The Land Bank is set to receive a bailout despite the government dealing with a strained fiscus and trying to secure adequate funding for the COVID-19 vaccine.
In April last year, the state-owned bank defaulted on R50-billion of its debt.
According to the Business Day, National Treasury is to announce the exact amount the bank will receive.
The bank reported an annual loss of more than R2,8-billion rand for the year that ended in March.
Non-performing loans sit at a staggering R8-billion and to make matters worse, the Auditor-General has said the Land Bank's results did not provide enough details for a sound audit opinion.
The AG highlighted problems with the statements, including a lack of internal controls to offset credit losses, and incomplete and proper records required by law to validate the financials.
Despite all this, the government says it will continue to support the Land Bank and help stabilise its finances.