ASB Pledges $400 Million In Low-cost Funding To Support Cyclone Impacted Rural And Corporate Sectors

Monday, 20 February 2023, 1:21 pm
Press Release: ASB Bank

ASB has today announced new disaster relief for corporate, business and rural customers, committing $400 million in low-cost lending to support businesses heavily impacted by Cyclone Gabrielle.

The lending will be offered for a maximum term of two years, with customers saving up to 2% in funding costs, depending on individual circumstances.

The bank has already introduced support for personal and small business customers, including more than $1 million already paid in ex gratia payments. Eligible personal customers can also now access a temporary overdraft to support with weather related expenses or hardship at 0.01% pa* - up to $2000, or $5000 if they are a home loan customer.

Yesterday ASB also announced a $2 million donation to the Red Cross New Zealand Disaster Recovery Fund, further boosting its support for customers and communities devasted by Cyclone Gabrielle.

Chief Executive Vittoria Shortt says helping to get the rural, business and corporate sectors in impacted regions back on their feet will be critical to rebuilding regional economies and communities.

“The devastation we have seen to farms, orchards and businesses has a huge flow on effect – at a community, regional and national level. The scale of destruction is immense and it comes at a time when many customers are already grappling with added financial pressures.

“The recovery from this disaster will be long and it’s going to take its toll. Our thoughts are with everyone impacted by these terrible events. ASB is here to help and we encourage all customers to reach out to us so we can support them”.

Affected ASB business, commercial and rural customers should speak to their relationship manager, or call 0800 272 287 if their business is supported through ASB’s Business Centre.

Other support available

ASB is offering $2,000 per household in one-off ex gratia payments for customers whose homes have been red or yellow stickered, and to small businesses that have been significantly impacted.

Business customers with turnovers of less than $2m a year and who have their main business account with ASB, and personal customers whose homes have been red or yellow stickered since Friday 27 January, and who had an active banking relationship with ASB prior to the damage occurring are eligible for the payment.

ASB is also extending broader financial support to weather impacted customers, including the option to suspend home loan principal repayments for up to three months, temporary overdrafts for personal customers, and targeted solutions for eligible business and rural customers, including access to working capital of up to $100,000.

Eligible personal customers can call ASB’s dedicated phoneline 0800 272 735 (option 3) to apply for the ex-gratia payment. Small business customers can apply for the ASB Small Business $2,000 Relief Payment online. Applications must be received by 31 March. Customers requiring additional financial support, including those wishing to apply for a temporary overdraft, should speak to their relationship manager or call 0800 272 735 (option 3).

For more information visit Extreme weather and flood relief support l ASB

*This would equate to 20 cents interest on a $2000 overdraft over 12 months. Due to technology constraints the interest rate cannot be set at 0%. We are working to address this.

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