MAJOR RURAL LENDERS ABSORB EXTRA RISKS AND COSTS ASSOCIATED WITH FLOODS IN RURAL COMMUNITIES Sydney, 24 November, 2000: Major rural lenders have re-confirmed their flood relief packages to help significantly ease financial burdens faced by NSW farmers heavily affected by the devastating floods in rural communities. Jeff Oughton, acting chief executive of the Australian Bankers' Association, said: "The major rural lenders agreed to absorb the extra risks and increased costs of holding margins on farm loans, which are receiving any government interest rate subsidy in these flood stricken rural communities. "The banks, the Federal and State Governments also agreed to continue consultations on financial relief for farmers and related businesses at this morning's meeting in Sydney convened to discuss flood relief measures. "Individual banks announced earlier this week wide-ranging assistance packages to help farmers, business people and individuals in rural communities adversely affected by the flood waters. "These included deferring repayments, re-structuring loans, waiving some establishment fees or providing additional loan funds where appropriate. "Banks understand that some farmers are facing a series of failed crops and that such long-term crisis situations placed additional burdens on farmers and their families, needing special consideration. "I call on other financial lenders to follow the leadership of the banks." Banks which attended today's meeting in Sydney were ANZ, the Commonwealth Bank, National Australia Bank, the Primary Industry Bank of Australia (PIBA) and Westpac. Mr Oughton said banks understood this was a difficult and stressful time for those rural communities who are facing financial problems as a result of the floods. "Each and every financial situation will be different, but be assured bank relationship managers will sit down with all customers to discuss strategies to deal with this natural disaster. "I urge customers who are facing financial hardship to contact their bank as soon as possible." The Federal and State Governments have said they will immediately commence work on an assistance package which can be agreed in principle and announced in the week beginning December 4, according to a joint statement from the Deputy Prime Minister and NSW Premier. For further information contact: Heather Wellard ABA PR Phone: 02 8298 0411 Mobile: 0409 830 439     ENDS