Govt approves R1.5bn Land Bank guarantee

Govt approves R1.5bn Land Bank guarantee

2014-04-02 16:53

Johannesburg - The government has approved a R1.5bn guarantee to the Land Bank following the Fitch ratings agency's upgrade of its national long-term rating, the bank said on Wednesday.

The guarantee was in addition to the existing guarantee of R500m, spokesperson Congress Mahlangu said in a statement.

On January 8, Fitch upgraded the Land Bank's rating from AA on its local rating scale, indicating a quality company, to AA+, which is a higher endorsement.

In July 2008, the administrative powers of the Land and Agricultural Development Bank Act 2002 were transferred to the minister of finance.

Land Bank chief financial officer Lebogang Serithi welcomed the move, saying it indicated that government had confidence in the bank's implementation of its turnaround strategy.

"This will go a long way in ensuring that the organisation is able to adequately respond to its mandate and equally support the National Development Plan," Serithi said.