Fonterra capital return could boost GDP – ANZ Report
The Fonterra divestment capital return should provide “a tailwind to GDP growth” next year, according to a new ANZ NZ report, but it’s not “manna from heaven” for the economy.
ANZ has announced an assistance package for farmers affected by extreme dry conditions across much of New Zealand’s east coast.
Many areas, including Canterbury, have experienced "severely dry" conditions over the past two months compared with the long-term average, according to NIWA.
“The Big Dry is affecting areas which haven’t experienced extreme conditions like these for many years, so for a lot of farmers this is new territory,” says Graham Turley, ANZ Bank’s managing director commercial & agri.
“We recognise the challenges and anxiety this is creating for farmers, which have been exacerbated by forecast low dairy payouts. We’re offering targeted assistance, recognising that the situation may require more complex solutions for some.”
The options available to affected farmers through ANZ are:
· Suspending loan principal repayments
· Waiving fees associated with restructuring business loans considered necessary due to impacts of extreme weather
· Waiving fees for term finance and investments, which improve performance and the ability to respond to climatic variation in future years
· Waiving the interest rate reductions associated with accessing funds on term deposits ahead of maturity date
· Providing access to discounted short-term funding to help farmers get through the immediate challenges while also protecting their long-term productivity
ANZ is encouraging farmers to act early and engage advisors to develop a plan, including working with accountants to produce cash forecasts and consulting with banks on funding requirements.
“The impacts of drought are not just financial. We also appreciate the stress created for some customers and encourage them to communicate regularly with their family, advisors and support networks,” says Turley.
Agriculture and Forestry Minister Todd McClay is encouraging farmers and growers to stay up to date with weather warnings and seek support should they need it.
The closure of SH2 Waioweka Gorge could result in significant delays and additional costs for freight customers around the Upper North Island, says Transporting New Zealand.
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New Zealand's new Special Agricultural Trade Envoy, Horowhenua dairy farmer, company director and former Minister of Agriculture, Nathan Guy says the Free Trade Agreement (FTA) with India is a good deal for the country.
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