The Nedbank Bank Group has confirmed that mortgagees will still be held responsible for repayment of loans, even if their land would be expropriated without compensation.
This news was confirmed by Kedibonea Molopyane, head of Nedbank’s media department.
According to the bank, a loan agreement is binding regardless of any form of so-called land reform.
Agricultural economists are amazed at Nedbank’s approach, as in most cases mortgages were taken over the bank as security of the bank. Now it seems that the bank does not have the courage to claim the land at the reigning government as part of its compensation, but rather want to immerse the landowner in total bankruptcy.