Debt crisis leadership
As a major provider of seasonal finance to farmers, Wrightson had the responsibility to show leadership in dealing with the rural debt crisis, according to the general manager of Wrightson Finance, Mr Denys Crengle. He told a farm finance seminar at Auckland yesterday that Wrightson’s decision to make seasonal finance available only to farmers who were viable and who could repay their debt had been criticised by people who did not fully understand the situation. But immediate action had been required to prevent the level of debt from increasing, The company’s approach to risk management and the provision
of seasonal finance during the debt crisis will be explained further by the general manager of Wrightson financial services, Mr Gerald Weenink, in Christchurch on August 18. He will address a farm finance seminar, sponsored by “The Press” in assocition with North Canterbury Federated Farmers, in the Christchurch Town Hall. Mr Weenink said he would be outlining farmer strategies for survival under the existing liquidity pressures. The seminar, titled “Profit on the farm,” will emphasise the positive aspects of farming and take a forward view of the industry’s future. Mr Crengle said yesterday that Wrightson
had realised four years ago that the debt burden was becoming too great for some farmers. During that time several farmers had been encouraged to sell their properties while they still had some equity.
While the company would have liked to see more farmers sell in the last three or four years, it had been difficult to get them to accept the reality of the situation as long as there was even a remote possibility that factors such as falling interest rates and a lower exchange rate could make them viable. But it was clear that even if there was an upturn in product prices it would not be sufficient to save many of those in trouble, said Mr Crengle.
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Press, 5 August 1988, Page 19
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316Debt crisis leadership Press, 5 August 1988, Page 19
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