LOW COST FINANCE FOR DAIRY FARMERS - AUSTRALIAN BANKERS' ASSOCIATION WELCOMES DECISION FROM DAIRY ADJUSTMENT AUTHORITY Sydney, September 27, 2000: The Australian Bankers' Association (ABA) says that it can confirm that dairy farmers taking advantage of the Dairy Structural Adjustment Program will be eligible for lower interest rates on loans from banks. The ABA has welcomed the decision made by the Dairy Adjustment Authority (DAA) Board to remove the uncertainty related to DAA recognition of agreements entered into by dairy farmers with their bankers. Stephen Carroll, a Director of the Australian Bankers' Association, said: "Dairy farmers can use the payments from the Government's adjustment program to support borrowings and access cheaper finance from banks. These borrowings will help support dairy farmers that decide to leave the industry or invest to improve their competitiveness and returns from their farms. "I am pleased to have received confirmation that if the DAA receives an irrevocable authority signed by the dairy farmer, it must abide by this direction. An irrevocable authority directs the DAA not to change the account into which payments are to be received without the consent of the holder of the registered charge - the financial service provider. "Where an irrevocable authority is put in place, banks can be confident that the dairy farmer's account, into which the government guaranteed quarterly repayments will be paid, will not be changed without the agreement of the financial service provider. "Without these agreements being recognised by the DAA, loans to farmers by financial institutions would have attracted significantly higher interest rates. "With uncertainty about this matter now removed, banks will be able to confirm that loans to eligible dairy farmers will now attract a lower interest rate. For further information contact: Heather Wellard ABA PR Phone: 02 8298 0411 Mobile: 0409 830 439     ENDS