ABB Interest Charges Hiked

ADELAIDE - May 13/02 - SNS -- The Australian Barley Board, in a signal of central bank attitudes toward national interest rates in countries outside the United States, was forced to raise interest charged on grain pool advances.

The new ABB rate of 6.65% will be effective from May 15, applying to all grower loan accounts for grain delivered to an ABB finance pool option for the 2000-2001 season and the 2001-02 season.

ABB's Managing Director, Michael Iwaniw said the ABB interest rate increase reflected that of the Reserve Bank's.

"Our pool interest rate has fallen every time the Reserve Bank has decreased the official rates and this has ensured ABB's rate remains extremely competitive," said Iwaniw.

"While we've now also had to follow in the footsteps of the Reserve Bank's first increase for some time, we believe our rate remains just as competitive for our pool options which provide finance to growers.

"The Standard (loan) Pool in particular, is an extremely flexible finance option. Not only does it provide cash quickly, but it also incorporates a number of features which enable growers to make this option work even more precisely to their needs.

"This includes an early pay-back system, and the opportunity to opt out of receiving top ups to the initial harvest advance (loan). Both of these features are aimed at allowing growers to have further cash flow management flexibility and to save on interest costs," said Iwaniw.