Reprieve for CBA farmers in debt

The Commonwealth Bank has followed ANZ with an aid package for drought-hit farmers but unlike its rival, it has no plans for a moratorium on foreclosures.

Commonwealth Bank (CBA) signage

The Commonwealth Bank has not followed rival ANZ in promising not to kick farmers off their land. (AAP)

Another big-four lender has announced a reprieve for drought-hit farmers in NSW and Queensland.

But the Commonwealth Bank will not follow rival ANZ in promising not to kick farmers off their land.

CBA's drought support package, unveiled on Friday, includes a temporary suspension on loan repayments, loan extensions, interest-free periods, and waivers on certain fees and charges.

The bank says it will work with debt-laden farmers in drought-affected areas on a case-by-case basis.

"(This) should provide some relief during this difficult time," executive general manager of regional and agribusiness banking Geoff Wearne said in a statement.

ANZ's announcement it will no longer force farmers off their land for at least a year has been welcomed by the federal government and independent MPs.

Another lender, NAB, told AAP it did not have enough agribusiness customers in severe financial difficulty to warrant foreclosures.

In the past year, it has foreclosed on only seven of its 30,000 Queensland and northwest NSW clients.

Meanwhile, a Nationals senator is seeking support for proposed laws making it illegal for banks to throw drought-hit farmers off their land.

A private member's bill by Queensland Senator Barry O'Sullivan would also prevent lenders hitting graziers with penalty interest rates.


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