Farm politics force ANZ moratorium

ANZ will adopt a one-year "moratorium on farm repossessions" in northern and western Queensland and north-west New South Wales, the bank declared yesterday.
 
The bank's stance is a rare acknowledgement of the sensitivity of issues around farm finance, a topic giving rise to energetic social media campaigns slamming banks.

It follows on from a meeting between ANZ representatives and farmers in the Queensland town of Winton a week ago and subsequent anger from senior politicians such as Nationals leader Barnaby Joyce, and as negative press in publications ranging from The Australian to ABC Radio National's soon to be axed Bush Telegraph.

ANZ CEO Australia, Philip Chronican, said that in addition to the moratorium, the bank would not increase interest rates on distressed farms and might extend interest rate relief "in cases of extreme distress."

The pledge to not jack up rates for "at-risk" loans acknowledges a practice adopted by most banks, and is a move that has drawn the ire of business borrowers and politicians as it's often perceived and being applied too pre-emptively.

The bank has a A$30 billion agribusiness loans portfolio, and has estimated that about 2.5 per cent, or around $750 million, is classed as "distressed" due to the drought. It is believed that there are around 40 to 50 farmers in the worst of the drought affected regions of Queensland and New South Wales.

Additional financial assistance will also be offered by ANZ to "some farm customers" who choose to leave the land.