Southland Rural Relief Package

Media release
27 September 2010

ASB supports Southland farmers 

ASB Bank has announced a range of special emergency relief and support initiatives to help farmers in Southland adversely impacted by last week’s disastrous snow storm.

“Today we are announcing two major relief initiatives, together with a comprehensive special rural customer assistance package,” says ASB’s Regional Manager, Lower South Island, Blair Evans.

“Firstly, we are donating $100,000 to the Federated Farmers Adverse Events Trust.  These ASB funds are specifically to assist the Southland sheep industry.”

“We have also established a special rural lending facility - a Rural Restart Loan to assist farmers in Southland to meet immediate working capital requirements,” Mr Evans says. 

Under the Rural Restart Loan, up to $100,000 will be available for existing ASB rural customers in the Southland region at a special variable rate of 1.25 percent per annum below ASB’s variable housing rate. The current special variable rate for a Rural Restart Loan will therefore be 5 percent per annum. Details of the loan are attached. 

A special customer assistance package is also available on application by Southland rural customers.  The assistance package includes the following measures specifically designed to assist these impacted customers:

- Provision of additional loans or changes to repayment arrangements for ASB rural lending customers experiencing financial difficulties, without incurring the usual bank establishment or adjustment fees; 
 - Review of credit card instalment repayments for those farmers under financial stress, including immediate consideration of requests for emergency credit limit increases;
 - A 90 day overdraft of up to $10,000 for rural loan customers at the variable housing rate less 1.25 percent (therefore a current rate of 5 percent per annum) to assist farmers with their short term needs;
 - Waiving term deposit break fees over the next month for affected Southland farmers wishing to access their funds ahead of maturity date. 

“Last week’s snow storm has caused considerable distress and disruption to farm life in lower South Island rural communities.  ASB’s Rural team is here to help customers with their specific financial needs and has a range of options to assist them to get back on their feet,” Mr Evans says. 

Term Sheet for Southland Rural Restart Loan

Purpose: To provide immediate working capital facilities for farmers in the Southland region adversely affected by the recent massive snow storm.

Criteria:   Farms within the affected area who have been severely disrupted  by the snow storm and have immediate short term cashflow needs to pay farm related expenses such as for feed, replacement stock and repairs and maintenance.

Availability of Offer: Open until 1 April 2011

Fund Size: Reviewable

Facility: Overdraft priced at 1.25% less than ASB’s Housing Variable Rate from time to time, therefore a current rate of 5% per annum applies.

Fees: Waived for this facility

Limit: Up to $100,000 for each existing ASB customer

Term: 1 year interest only, followed by repayment over three years

Conditions: Lending criteria applies and ASB product terms and conditions apply.

Contact: Contact your local Relationship Manager. Alternatively, call ASB Contact Centre on 0800 272 007 between 8am to 8pm 7days a week.