Farmers’ loan breaks still carry interest
Farmers and agricultural businesses qualifying for loan repayment breaks of up to two years may still have to pay interest on their loans under the Bank of Namibia’s (BoN) new relief measures. Although affected borrowers can temporarily stop paying the original amount borrowed, interest may continue to accumulate during the repayment break – unless the bank and client agree otherwise in writing. This comes as the BoN’s monetary policy committee last week increased the repo rate by 25 basis points from 6.75% to 7%. “Interest shall accrue on the loan at the contractual interest rate, unless otherwise agreed in writing