LOAN CONCESSIONS

Evening Post, Volume CXV, Issue 38, 15 February 1933, Page 15

LOAN CONCESSIONS

INTERMEDIATE CREDIT

RELIEF OF HARDSHIP

A return submitted by tho Commissioner at the monthly meeting of the Eural Intermediate Credit Board showed that the arrears of interest and instalments as at December 31 last slightly exceeded those as at December 31, 1931. As the major part of tho season's revenue will bo received from December 31 onwards, the arrears should bo reduced before the next return is prepared. The arrears of interest arc comparatively small, and the position was favourably commented upon by members of the board. It is the board's practice to require the position of loans to sheep farmers and grain growers to be reviewed each year in order that the principal repayments may bo fixed having regard to the financial position of the farmers and the anticipated returns from their properties. The board has previously delegated to a limited extent the-power to fix the repayments to be required each year. It has now decided to extend that delegation, and as a result further expedition in dealing with such matters should be shown. As has been reported previously tho board ha 3 found it necessary tD grant concessions to a number of its borrowers to enable them to carry on successfully and hieet their other .bmmitiherttSj _nd in order to expedite tbe handling of applications for concessions and the giving 6_ decisions thereon the board has delegated certain powers of local organisations in respoct to loans granted through rural intermediate credit associations. It has now been decided to approve of a similar delegation in respect of loans granted by the board direct tb farmers, and in futhve- district! boards may> if the board's usual conditions are observed, grant concessions within limits defined by the board. Such delegation should result in the borrowers concerned receiving; with a minimum of delay, decisions in respect of their applications for concessions. The board again reviewed its general, policy relating to the granting of concessions. The board is ready to grant concessions where they are shown to be required and where the position of the loans is satisfactory, but it considers that each case must be dealt with on its merits, and concessions will be granted only in-cases where they are shown to be justified. A general reduction of the basis of repayments without regard to the circumstances of each case would result in relief being granted in cases where it is not warranted. The policy adopted by the board is designed to ensure that hardship is not imposed ' and that relief will be granted where it is shown to be essential. '