Qld: Rise in official rates not passed on to farmers by QRAA

AAP General News (Australia)
12-04-2000
Qld: Rise in official rates not passed on to farmers by QRAA

BRISBANE, Dec 4 AAP - Farmers will be spared from paying higher Queensland Rural Adjustment
Authority (QRAA) loan rates, it was announced today.

Primary Industries Minister Henry Palaszczuk said the interest rate for farmers with
existing Primary Industry Productivity Enhancement Scheme (PIPES) loans would remain at
six per cent.

The official cash rate set by the Reserve Bank is currently 6.25 per cent.

"Finance is being provided to primary producers cheaper than it can be obtained," Mr
Palaszczuk said.

However, he said an interest rate of 7.42 per cent would apply to loans granted by
the QRAA after January 1, 2001.

"This new rate is based on the Queensland Treasury Corporation 10-year base rate and
a one per cent margin," he said.

"The rate will be reviewed by the Queensland Rural Adjustment Authority annually on
July 1 and could be expected to fall if official interest rates come back as anticipated
next year."

Last financial year, QRAA provided almost $60 million in assistance for rural businesses
with 94 per cent of applications approved.

AAP bja/sc/mjm/br

KEYWORD: LOANS

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