BANKS TO CONTINUE SUPPORT FOR FARMERS THROUGHOUT DROUGHT Sydney, 3 June, 2003: The Australian Bankers’ Association (ABA) said banks will continue to support Australia’s farmers through this difficult drought. David Bell, Chief Executive of the ABA, has responded to today’s media release from the Deputy Prime Minister and Leader of the National Party, Mr John Anderson.   Mr Bell noted that the Deputy Prime Minister had written to major banks and other lenders expressing his broad appreciation for their attitude in relation to the drought. The ABA appreciates the Deputy Prime Minister's acknowledgment of the positive approach of banks during this most difficult time for our rural customers.   Mr Bell said: “The banks have not changed their position since we last met with the Deputy Prime Minister back in December last year. Banks confirmed to Mr Anderson the importance the banking sector places on the continuing strength of the Australian agricultural sector.”   “The seriousness of the drought is well recognised, and banks have not changed their position since that meeting and will continue to support viable farmers.”   Banks have been providing our rural communities with special consideration, understanding during this difficult period and examine customer’s circumstances on a case by case basis. The banks’ drought relief packages provide practical help by giving immediate financial relief to those in most need of assistance and improve prospects for maintaining a viable farming business.   Mr Bell said: “Banks recognise that drought is a part of the normal business cycle of farming. For those bank customers receiving the Federal Government’s interest rate subsidies, banks have not increased credit risk margins on loans to reflect the short term impact that the drought is having on farm incomes.”   For further information:   Heather Wellard ABA Public Relations Phone: 02 8298 0411 Mobile: 0409 830 439   ENDS