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Farms crisis could cost foreign banks millions

    JOHANNESBURG

    In a related development, the South African Press Association (SAPA) reported on Wednesday that South African and international banking institutions could lose close on US $1 billion in farmers’ bad debts if the situation in Zimbabwe deteriorates further.

    One of the banks is Stanbic, said to be owed close to US $20 million by some of the evicted landowners. Others include the British institutions Barclays and Standard Chartered Merchant Bank. Zimbabwe’s Zimbank has also been cited among banks that stand to forfeit millions from non-payment of loans. The South African Nedbank and Absa groups have shareholdings in two other Zimbabwe-registered banks.

    It quoted Colin Cloete, deputy president of Zimbabwe’s Commercial Farmers Union, as saying there had been a lot of nervousness among banks since the farm invasions started in February.

    This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions

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