29 September 2008
Leading rural lender Rabobank says farmers and agribusinesses in Australia can be assured that it is business as usual from the bank’s perspective in the farm finance market, despite current global financial market volatility.
Rabobank general manager Rural Australia Peter Knoblanche says the bank is continuing to see strong activity in the rural lending market as Australian primary producers and agribusinesses seek to capitalise on strong global commodity prices and improved production outlook for the current season.
“Despite the concerns emanating from the current uncertainty on global financial markets, we are not witnessing any noticeable drop off at all in farmer appetite for finance and our lending volumes are strong and growing,” Mr Knoblanche said.
“This is a good indication that – at least for now – farmers are confident about the fundamental strength and positive outlook for the sector.”
Mr Knoblanche said that while the current unrest on world financial markets had implications for the entire global economy, the Australian agricultural sector had a number of positive factors in its favour and a very optimistic long-term outlook.
“Australian agriculture is benefiting from historically high commodity prices and, despite the impact of ongoing dry conditions in some parts of the country, is on track for an improved season particularly in the cropping sector,” he said.
“The recent fall in the Australian dollar exchange rate is also helping agricultural exporters, while the reduction in interest rates had also been welcome news for farmers.”
Mr Knoblanche said Rabobank, the world’s leading food and agribusiness bank, was in a strong position to assist those in the rural sector with their financing requirements in the current market environment.
“As part of the AAA rated international Rabobank, which is ranked as the safest nongovernment bank in the world, we are in the position that is absolutely just business as usual for us in terms of our rural lending activities,” he said.
Mr Knoblanche said Rabobank’s cooperative ownership and structure also added to the bank’s solid position in times of market unrest. Rabobank was founded as a farmers’ cooperative more than 110 years ago and is still structured and run as a cooperative.
Rabobank Australia & new Zealand is a part of the international Rabobank Group, the world’s leading specialist in food and agribusiness banking. Rabobank has more than 110 years’ experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank has a AAA credit rating and is ranked as one of the world’s safest banks by Global Finance magazine. Rabobank operates in 43 countries, servicing the needs of more than nine million clients worldwide through a network of more than 1500 offices and branches. Rabobank Australia & new Zealand is one of Australasia’s leading rural lenders and a significant provider of business and corporate banking and financial services to the Australian food and agribusiness sector. The bank has 80 locations throughout Australasia.
Contact
For further information please contact Denise Shaw, Public Relations (Tel: 61 2 8115-2744) or Elise MacDonald, Public Relations (Tel: 61 2 8115-4861) or email on sydney.mediarelations@rabobank.com.