Commonwealth Bank subsidiary Bankwest has promised not to foreclose on any of its farming clients as large parts of rural Western Australia suffer one of the driest seasons on record.
The promise was, however, tarnished by Bankwest's announcement that it was raising its interest rates for retail and business clients by 0.4 of a percentage point – 0.15 of a percentage point more than the Reserve Bank of Australia's official increase, The Australian Financial Review reports.
Most farmers in WA have little to look forward to as drought conditions devastate crops, in contrast to the bumper crops of the eastern states, where too much rain looms as the major threat.
Bankwest head of rural and regional banking Jamie Ritchie said the bank was fast-tracking reviews of farms at risk so that farmers could rest easy that finance would be in place for 2011 crops.
