I am the good looking one
Quote:
Originally Posted by
winner69
Sorry PT ...it was Xerof
Always get you two mixed up
http://beeflambnz.co.nz/pics/sportsa...2648096694.jpg
That's understandable.
Best Wishes
Paper Tiger
Is it very dark down there
Quote:
Originally Posted by
Roger
Individually and collectively impaired loans went down as a percentage of total loans advanced as per yesterday's post...and that with dairy outlook at a ten year low.
Even if you take your viewpoint that's hardly the substantial new provisioning you called it in your previous post...really quite minuscule in the context of the loan book with so many customers unable to meet their current loan obligations.
There's been several recent articles in the press about substantial new draw-down's of loans in the sector in the last quarter to 30 September...I guess if people can't pay their existing loans and can't sell their farms its better to loan them even more money, (dress it up as showing support, that's really politically correct), and cross your fingers and hope it all comes out in the wash...opps it isn't...GDT dairy prices down 8% overnight.
You are digging a pretty deep hole for yourself, Roger.
I should not be in a position where I feel the need to explain Company Account's 101 to an accountant.
There exists the real possibility that HNZ will have to make further provision for loans to dairy, that is not in dispute and there also exists the possibility that they have already made more than enough.
But they have to make reasonable, rational decisions.
Best Wishes
Paper Tiger
Dairy Debt grows at it's fastest pace in many years...I
Quote:
Originally Posted by
iceman
Hi Roger. Yes of course I have seen the various economic commentary. However I have not seen any reports on HNZ having "many customers unable to meet their current loan obligations". I look forward to receiving your links to substantiate it
That's good then mate as I don't need to waste the time repeating what most economic commentators have been saying many times and that's generally been that the dairy price needs to be in the late $5 range + for farmers with debt to just break even.
Of course I can't provide links saying HNZ's customers can't pay their bills but what do you think a loan to farm value ratio of approx. 73% on current farm values implies, (amongst the most indebted in the sector surely ?) and that combined with HNZ's own statements that they're giving ongoing support to their customers. Support means lending more money to them because their cash flow is insufficient to survive, see this.
http://www.interest.co.nz/news/78394...s-respectively I dunno mate but I'm pretty sure those dairy farmers weren't borrowing money hand over fist to travel to the Rugby World Cup.
Not at all PT, I think its pretty clear than the BNZ and HNZ have taken quite distinct approaches to their provisioning and I think that's clear for people to see, even those that don't want to understand the latest IFRS, (International Financial Reporting Standards). HNZ might squeak through though, the new standard doesn't come into force till 1 January 2018..suppose they're hoping the dairy storm has blown over by then. Time will tell, nuff said.