$250 million kick start for Christchurch

Prime Minister John Key has applauded ASB's announcement it will invest $250 million to stimulate the earthquake-devastated Christchurch economy.

Mr Key was in Christchurch with ASB chief executive Barbara Chapman for the announcement.

"This is the type of stimulus Christchurch needs to get back on its feet ..... this is a multi-million dollar vote of confidence in Canterbury and I applaud ASB for their initiative."

The package was aimed at stimulating the Christchurch economy, local businesses and community groups, Ms Chapman said.

A new business rebuild fund would provide additional cashflow relief of up to $100 million for the bank's existing small and medium businesses.

The fund would allow Christchurch businesses to switch existing borrowing with the bank into a one-year interest-free loan followed by two years with a one percent discount on current interest rate.

A $100 million new business support fund would be available to existing customers and new businesses and would also provide a one-year interest free loan and two years at a one percent discount.

Principal payments would not be required for the first 12 months under both funds.

Home loan customers would be offered a six-month repayment holiday and a one-year interest discount of one percent on the variable rate or 0.5 percent on the fixed rate.

Ms Chapman said the bank wanted to take some of the immediate financial pressure off its customers so they could focus on their immediate family and property priorities.

The bank also said $1 million would be distributed among registered not-for-profit community groups through a community grants programme.

Hundreds of local community and volunteer groups that support the Christchurch people had been affected, she said.

NZPA
Sat, 26 Mar 2011

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$250 million kick start for Christchurch