Changes in credit terms will hurt farmers
02 May 2009
A recent policy decision by asset finance company Lombard to withdraw financing the purchase of farm machinery older than 8 years on final payment has been criticised by an Ulster politician.
Jim Allister MEP commented:
“Very many Northern Ireland farmers rely on securing finance to enable them to purchase essential farm machinery, such as tractors. In many occasions, it may be a more prudent business decision to purchase a slightly older piece of equipment, particularly in light of the current financial climate within farming. To exclude financing of same could result in financial repercussions within the industry”.
“As a politician, I cannot interfere in the workings and decisions of a private company, nor would I want to. However, farmers have previously received assurances that their terms of credit and availability of credit will not be reduced as a result of the economic downturn. I am concerned that in fact farmers’ availability to finance is being undermined, and in this occasion, by a bank which is part of the part-Government owned Royal Bank of Scotland. I would urge farmers to be vigilant of this sort of activity by banks and other credit institutions.”
ENDS
