Government clarification

On Thursday 29 June at a grower meeting in the Hawke's Bay, an interest rate figure was mentioned by a Government official. This figure unfortunately does not paint an accurate picture of the situation.

As a result, the Government wishes to clarify the key parameters of the North Island Weather Events Primary Producer Finance Scheme concessional loans. Specifically:

1. Support will be concessionary, and lending arrangements (which can include rate, tenor, repayment requirements, and deferral of interest and whether this is capitalised or not) will be considered on a case-by-case basis based on the individual needs of businesses.
2. For the avoidance of doubt, the dimensions where Kanoa can apply flexibility does include the ability to not capitalise this deferred interest (i.e., allow for a period of time in which interest would not accrue and compound) where appropriate. Specific arrangements will depend on the position and needs of the business.

In the first instance, growers are advised to talk to their banks and financial advisers.

Read the Government announcement here

Photo: Government officials presenting to growers in Gisborne this morning.