Rural Bank to be given debt flexibility

Press, 27 June 1987, Page 1

Rural Bank to be given debt flexibility

National would speed the time taken by the Rural Bank for debt restructuring, says the Opposition spokesman on agriculture, Mr John, Falloon. About 6000 farmers owed $33 million in arrears on about $450 million of mortgages, he said.

“National will make certain that the Rural Bank moves more urgently to resolve those who have applied for restructuring,” Mr Falloon said.

The bank would take a longer time-frame into account when assessing individual farm viability, and also consider off-farm income.

“This would mean that the Rural Bank would be given more flexibility to.' park debt which

could come back Into the mortgage as farm incomes and viability improve.” Off-farm income could be used to improve farm viability and qualify owners for restructuring. > , Mi* Falloon said that National would review the capital and management structure of the bank. Ballot fanners settled by the Lands and Survey Department would have a similar restructuring opportunity to bank clients. The policy of "parking” debt was fairer than increasing discount levels, as when times Im-, proved accumulated debt became a liability and was brought to charge. Further report, page 2