NDB seeks P400m cash injection

Morapedi PIC: KENNEDY RAMOKONE
Morapedi PIC: KENNEDY RAMOKONE

The National Development Bank (NDB) says it is in talks with government to ask for a P400 million cash injection to keep the business afloat amid rising non-performing loans (NPLs). The troubled financial institution plans to present a restructuring plan shortly and hopes an improved balance sheet will put it in a better position for funding.

In a presentation to the Parliamentary Committee on Statutory Bodies and Pubic Enterprises, NDB chief executive officer, Lorato Morapedi said due to the macro and micro economic effects, 38% of the bank’s loan book fell into non-performing loans status.

She said this negatively affected the bank’s liquidity position, noting that in order to improve performance of the portfolio, there is need for funding support.

Editor's Comment
Botswana at a critical juncture

While the political shift brings hope for change, it also places immense pressure on the new administration to deliver on its election promises in the face of serious economic challenges.On another level, newly appointed Finance Minister Ndaba Gaolathe’s grim assessment of the country’s finances adds urgency to the moment. The budget deficit, expected to be P8.7 billion, is now anticipated to be even higher due to underperforming diamond...

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