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The Development Bank of Namibia (DBN) has become aware of some public sentiments in relation to the need for broader appreciation of the Bank settlement policy in an event of default. Against that backdrop, the Bank deems it necessary to provide assurance that it conducts its operations within approved policy frameworks and in line with relevant legal instruments.

The Bank has robust and well-developed policies that inform credit decisions. All DBN clients, regardless of their political or socio-economic standing are subjected to similar policies at loan application and collection in an event of default.

When an enterprise financed by the Bank is proven insolvent and unable to repay the debt, the Bank initiates measures to recover the loan. Prior to settlement, the Bank initiates measures that preserve the enterprise, which include repayment holidays on the entire debt, interest repayment holidays, extension of the duration of loans, and possible conversion of debt to equity on case-by-case basis.

The Bank makes decisions to provide finance based on the apparent sustainability of business plans and cashflow projections, without reference to the occupation or status of the applicant. All decisions, including the decision to pursue a settlement, are taken within clearly defined parameters and are subject to scrutiny and ratification by committees.

It is against Bank policy to discuss client-related matters in public and thus the Bank will not be drawn into discussions on confidential client matters.

The Bank encourages reporting of irregularities and incidents of fraud, corruption, nepotism, theft of intellectual property and / or any other misuse of its capital. Should there be any suspicion or proof of such abuses, the Bank urges the public to report the incident to outsourced independent investigation.

Details of the reporting mechanism can be found here...