Question NW447 to the Minister of Finance
08 March 2024 - NW447
Masipa, Mr NP to ask the Minister of Finance
Whether the National Treasury will continue to bail out the Land Bank, despite acknowledging that the National Treasury does not have adequate funds; if not, what is the (a) position in this regard and (b) long-term sustainability of the specified bank; if so, what are the relevant details?
Reply:
a) Any future fiscal allocation to the Land Bank will be subjected to the national budget process.
b) The Land Bank is currently in the process of implementing its revised business strategy that will focus on its operating and funding model for long term sustainability. National Treasury will continue to work with the Land Bank to ensure a viable long-term financial sustainable business model is implemented.
Further to this, it is anticipated that the Land Bank default position will be cured during FY2025 which will further assist the long-term financial sustainability of the Land Bank. The Land Bank has concluded partnerships with the Department of Agriculture, Rural Development and Land Reform to enhance its blended finance scheme, which will further assist the Land Bank with its D&T mandate.
R7 billion fiscal funding was made available to the Land Bank during the 2021 National Budget. This amount was allocated on the basis to cure the default position of the Land Bank and to re-establish its development and transformation (D&T) mandate. In addition, the fiscal funding was used to repay government guaranteed debt owed to the Land Bank, thereby reducing Government’s exposure to the Land Bank to R0. Currently, R5.6 billion has already been transferred to the Land Bank, with the remaining R1.4 billion used to settle guaranteed debt.