South Africa Mulls Land Bank Bailout as Virus Relief Beckons
- Agricultural lender may get recapitalization, more guarantees
- Land Bank runs into liquidity crisis, triggering default event
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South Africa is considering bailing out yet another state-owned company, at a time when it needs all the money it can get to revive an economy struggling to cope with the coronavirus.
The National Treasury said Tuesday it’s mulling more aid for the nation’s largest agricultural lender, the Land and Agricultural Development Bank, in the form of a recapitalization and more guarantees on its debt. While the state-owned national airline failed to convince the government it needs extra financial aid, talks to find alternatives to save South African Airways continue.