Farmers warned against Euro loans - Farmers Weekly

Subscribe and save

Farmers Weekly from £133
Saving £46
In print AND tablet

SUBSCRIBE NOW

sub_ad_img

Farmers warned against Euro loans

24 June 1998
Farmers warned against Euro loans

FARMERS have been warned by the Clydesdale Bank against being tempted by Euro-based loans or overdrafts, despite the offer of low interest rates.

    Read more on:
  • News

Farmers warned against Euro loans

24 June 1998
Farmers warned against Euro loans

FARMERS have been warned against being tempted by Euro-based loans or overdrafts, despite the offer of low interest rates.

Henry Graham, agricultural finance specialist with the Clydesdale Bank, says currency fluctuations make the money risky.

He said very few farmers would have enough export sales to produce a worthwhile income in Euros. Any other farmer would have to convert Sterling into Euros to pay for Euro-based loans and overdrafts – exposing borrowers to a currency exchange risk which even the best financial experts would not be willing to commit.

His comments contrast with those made by NatWest analysts, who said British farmers should think about doing business in Euros.

Mr Graham and his colleagues in other Scottish banks were not impressed by that suggestion. He said: “The theory is that British farmers will be able to receive subsidies in Euros and use them to pay for Euro loans and overdrafts, without the need for any currency conversion. While that might become an option in the future, it is not an option today. The issue has still to be debated by Government in consultation with the industry.”

  • The Scotsman 24/06/98 page 28

    Read more on:
  • News
blog comments powered by Disqus