South African Agricultural Bank Warns Land Confiscation Could Trigger Defaults Costing Economy $2.8B -- Society's Child -
Seizing privately-owned land without compensation could be costly for the South African economy. The government would be forced to bail out banks as farmers stop investing and paying off debts, warns state-owned Land Bank. The government's new decree on land reform could trigger defaults that would cost the economy 41 billion rand ($2.8 billion) if the bank's rights as a creditor are not protected, according to the lender. Land Bank is an agricultural bank guided by a government mandate to provide financial services to the commercial farming sector and agri-business.