Regulatory Alerts2024-10-23
Bank of Namibia Determination on Drought Relief Policy Changes
The Bank of Namibia has issued a two-year determination mandating policy and regulatory adjustments to support agriculture sector clients affected by the persistent national drought. Banking institutions are authorized to extend loan repayment moratoriums of up to twelve months, restructure distressed non-performing loans, and offer emergency credit facilities under preferential terms while maintaining burden-sharing principles. The directive simultaneously increases single borrower exposure limits to thirty percent of capital funds for agricultural clients, requires monthly regulatory reporting and public disclosure, and ensures affected loans retain appropriate classification status during the relief period.
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