Sydney, 28 March, 2006: The Australian Bankers’ Association (ABA) said that retail banks with customers adversely affected by Cyclone Larry have already agreed to suspend repayments on loans for three months.

Last week, retail banks announced emergency packages in which they detailed a number of measures to assist customers avoid financial difficulty as a result of the cyclone.

David Bell, Chief Executive of the ABA, said: “Banks are urging any customers who may be adversely affected by the cyclone to contact their bank.”

“Australian banks have a long history of working with customers affected by natural disasters, by putting in place arrangements for special financial needs in difficult times.  This includes special arrangements for individual customers, businesses, as well as the farming community.”

“Banks manage the impact of natural disaster on customers on a case-by-case basis reflecting varying impacts and options available to individual customers.  The financial position of customers varies and this determines the options that are available.”

“Farmers and other rural businesses experiencing difficulties because of the cyclone need to understand their financial position so that they can work together with the bank to identify the options that best suit their businesses.”

Some of the financial arrangements for those affected by the cyclone include:

• Suspension of loan repayments;
• Residential, business and agricultural loan re-structuring without the usual bank fees and refinancing at a discounted fixed interest rate;
• Waived early withdrawal fees for those customers wishing to withdraw term deposits;
• Temporary adjustment to customer lending limits including credit cards to assist customers cope with unexpected costs;
• Expediting insurance claims for insurance customers.

Many banks have been supplying banking services in the cyclone affected towns which has enabled those communities to access cash. The banks have also sent extra staff into Far North Queensland to assist with the recovery effort.

Finally, banks are a donation point for public contributions to the Queensland Premier’s Disaster Relief Appeal and many banks have also made donations to the appeal.