Fed: Banks prepare for pep talk from Anderson on drought
CANBERRA, Dec 15 AAP - Banking bosses, who are expecting a personal warning from DeputyPrime Minister John Anderson tomorrow about their obligations to rural Australia, todayurged farmers to take up the banks' own special drought-relief packages.
Mr Anderson has summoned banking chiefs to a meeting in Sydney to discuss their rolein supporting drought-stricken farmers, and is expected to warn them against any repeatof the mass foreclosures of the early 90s.
Announcing the federal government's $368 million drought package last week, Mr Andersonsaid nothing would make him angrier than to hear banks were profiteering from farmersin trouble as they had in the past.
He will repeat the message to the banks tomorrow: that the success of the scheme dependson their goodwill and that he's relying on them to do their bit.
The Australian Bankers Association has welcomed the government's package, which involvesinterest rate subsidies for farmers and small businesses in drought-affected regions,as well as easier access to welfare payments.
ABA chief executive David Bell said banks had already been providing extra carry-onfinance to help buy fodder so farmers would not lose core breeding stock.
"Many livestock producers have been proactive in managing the drought by strategicallyreducing stock numbers ahead of the decline in feed availability," Mr Bell said.
"However, banks don't want to see the situation where farmers are forced to run downtheir core breeding stock, because it would take a number of years to rebuild the geneticbase of livestock enterprises once the drought breaks."
Mr Bell said drought-relief packages provided by the banks offered practical help bygiving immediate financial relief as well as improving the long-term prospects of farmingbusinesses.
A spokesman for Mr Anderson said he expected tomorrow's meeting to be cordial, butsaid the minister wanted the banks to keep up the spirit of goodwill they had alreadyshown.
"The drought has only just begun, and the hardest financial times are still ahead,"
the spokesman said.
"So far the banks have acted very appropriately and he would like to make sure thatthat will continue."
The Commonwealth Bank said drought assistance measures included free restructuringof existing loans, interest-only repayments until the drought breaks, stays on creditcard repayments and waiving of early withdrawal penalties for term deposits.
"Our focus is on assisting any of our customers who may be suffering financial difficultyas a result of the drought conditions," rural and regional senior executive Steve Morgansaid.
AAP kmh/was/br
KEYWORD: DROUGHT
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