ASB says it already offers 'holidays'

ASB Bank says it has already been able to offer lengthy repayment holidays of six months or more to mortgage borrowers similar to those announced this week by its parent, Commonwealth Bank of Australia.

CBA chief executive Ralph Norris, who was previously ASB's boss, said his bank would offer mortgage repayment holidays of up to 12 months to workers laid off as a result of the global recession to help keep them and their families in their homes until they found new jobs.

It was not in the bank's interest to see people "get into trouble", he said.

"In the case of those unfortunate enough to be unemployed, we will provide repayment holidays for six months, and in some circumstances up to 12 months, with interest being capitalised."

In New Zealand, where bank data on impaired loans show home buyers are under far more pressure, ASB head of retail banking Ian Parker yesterday said Norris' statement "pretty much" brought CBA into line with his bank's policies on relief for distressed borrowers.

To read the full NZ Herald article click here

Posted: 19 Mar 2009

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