ANZ today announced it would reduce interest rates for variable business lending by 1.00%pa for farmers in drought-declared areas, as well as setting aside $130 million for low interest loans to support farmers through the next season.
The interest rate reduction will apply for the next 12-months to family and small farming enterprises that currently hold variable rate business lending with ANZ, effective from 1 September. For customers with a variable rate business loan of $300,000 the 1.00%pa discount would save them up to $3000 on interest payments over the next 12 months.
ANZ’s total drought relief package includes:
- 1.00% reduction on variable business farming loans in drought declared areas
- $130 million in discounted loans available to support farmers through the next season
- $1 million donation to help farmers struggling with drought conditions
- Suspension of loan repayments, including credit cards for up to three months
- Continuing moratorium on farm repossessions in drought-declared regions
- Waiving fees associated with restructuring business loans
- Longstanding commitment not to increase interest rates on distressed customers.
ANZ Group Executive Australian Business and Private Banking Mark Hand said: “We hope our relief package provides the support our farming customers need at this difficult time. ANZ is committed to Australian agriculture and we remain committed to supporting farmers through the drought.
“Our special fund will provide immediate cash flow relief while the interest rate reduction can help farmers prepare for next season when hopefully conditions ease and provide a critical shot in the arm for drought-affected communities,” Mr Hand said.
ANZ has committed to provide a solution for customers eligible to offset their Farm Management Deposits against primary production income in line with current legislation. While this will not immediately help farmers in drought, it will provide additional support as they plan for future seasons.
ANZ encourages customers impacted by drought to contact their Agribusiness Manager. Customers can also contact ANZ’s dedicated hardship team on 1800 351 548 or visit www.anz.com/hardship