ASB offers loans, fund to create and protect employment

by Paul McBeth

Tuesday 24th February 2009

ASB Bank Limited, the New Zealand unit of Commonwealth Bank of Australia, said it will establish an NZ$1 billion loan fund at below market rates, to provide funds for businesses with potential to create jobs.

The bank will offer Job Creation loans at a rate of 5% per annum, 0.95% p.a. below its current two-year fixed term to existing business clients that are able to demonstrate the employment benefits it would provide. They will be for a minimum of NZ$100,000 to a maximum of NZ$10 million and will need to be drawn within 60 days of approval.

"These loans are specifically aimed at businesses looking to invest in a new project, process or expansion initiative," said chief executive Charles Pink. "Provided the business case for new lending stacks up, and will result in additional people being employed, or stop existing employees losing their jobs, we will consider it."

ASB will offer two-year term deposits from NZ$5000 to NZ$5 million at 5% for investment in the fund. Rates for the term deposit will be reviewed weekly, but will be fixed for the full term at the time of approval.

Prime Minister John Key congratulated "ASB for its constructive approach."

(Businesswire)

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