Farmers praise Rural Bank

Press, 12 January 1987, Page 27

Farmers praise Rural Bank

The president of the Federated Farmers, Mr Peter Elworthy, has accused some financial institutions of forcing farmers off their farms then settling others on at more favourable terms. These terms were such that, under them, the original farmer would have survived, he told Federated Fanners dominion council in Wellington. It was a practise that must be exposed and stopped, Mr Elworthy said. He applauded the Rural Bank which, he said, had worked in an efficient, sensitive manner. Certain financiers would do well to follow that example. There were others which had reduced their

interest rates. In one case, tfiey had gone from 34 per cent to 10 per cent Mr Elworthy also urged farmers to shop around for the best interest rate deal. There was considerable clout in numbers and the days of thinking of bankers as little gods were gone, he said. “We must influence the market — and can do so. We must acknowledge that total unacceptability of an interest rate of 20 per cent Attitudes should focus on interest rates of 10 per cent and less, Mr Elworthy said.” He said the Rural Bank debt restructuring scheme was proving a very bright spot It had taken time to get details worked out but applications were now flooding in.