Fin24 reports that the Land Bank, which has missed another deadline to conclude an agreement with lenders to which it owes R40 billion, announced on Tuesday that its CEO Ayanda Kanana had resigned.

The bank defaulted on debt servicing payments in 2020 and has been in talks with the majority of lenders ever since to solve the default. Until it is resolved, the bank cannot access finance to lend on to farmers. During the audit of the last financial year, the bank was required by the auditor-general to reach a "liability solution" with lenders by 31 January, but a solution has yet to be found for the bank's debt dilemma. Kanana had been in the CEO position for two years. Another senior executive, Litha Magingxa, who was head of agricultural economics and advisory and had been with the bank for four years, also resigned. Kanana, who coincidentally appeared before parliament’s portfolio committee on finance on Tuesday, told MPs that a third proposal or "liability solution" was on the table before lenders. "For the past 22 months, we have been working with lenders on a solution on three solutions. Lenders have indicated they have reservations about the latest solution. We are continuing to engage so we can get out of default and focus on our mandate," said Kanana. Treasury Director General Dondo Mogajane said Treasury was working "flat out" to find a solution that was acceptable to everyone. Futuregrowth, which is coordinating the lenders group, would not comment on the negotiations.

• Read the full original of the report in the above regard by Carol Paton at Fin24

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