Rural Bank rates
Applications for Rural Bank loans are subject to viability tests based on a 16.5 per cent interest rate, the Minister in charge of the bank, Mr Moyle has said. The actual rate charged on loans made this year is 13.5 per cent, the Minister said in response to a question in the house from the Leader of the Opposition, Mr Bolger. Mr Moyle was asked what Interest rate the bank uses to determine whether a proposed farm purchase is considered economically viable.
The interest rate on this year’s loans will be reviewed upward at one per cent a year to market rates, he said. The 16.5 per cent test rate is considered appropriate at present to ensure the viability of an applicant’s proposal in the medium term. The rate used to test the viability of a proposal is regularly reviewed, Mr Moyle said, and when appropriate is adjusted in line with movements in financial market rates for medium term funds.
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Press, 24 April 1986, Page 25
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163Rural Bank rates Press, 24 April 1986, Page 25
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