Banks assure IFA credit availability for farmers is not a problem

FIVE bank groups have assured the Irish Farmers’ Association that credit availability is not a problem as regards farmer borrowers, subject to the normal qualification about repayment capacity.

The IFA said it had been given the assurance by the AIB, Bank of Ireland, Ulster Bank, ACC and NIB at meetings held to assess the credit situation for farmers and to review their repayment performance.

Despite the high-profile difficulties in the banking sector in Ireland and globally, IFA farm business committee chairman, James Kane, said the banks described the situation in relation to lending to farmers as “business as usual”, and referred to the good repayment record of farmers generally.

He said, however, that the banks were concerned about the closing date for completion of work under the farm waste management scheme, and that they had been briefed by the Department last May that the end- December closing date would not be changed.

“As regards repayment performance by farmers, the general view of all the banks is that they do not see any significant problems,” he said.

“The harvest problems facing grain farmers was on the agenda and we sought an understanding attitude by the banks.”

Mr Kane said the banks agreed to keep IFA informed of any signs of stress in relation to repayments by farmers.

“IFA strongly advises any farmer who is getting into difficulty with repayments to go and meet the bank as early as possible,” he said.

“By doing that, a manageable repayment plan can be worked out and surcharges or other penalties avoided.”