Agricultural loans report

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A decision made 20 November 2009 regarding: Agricultural loans report.

Decision Reference: MD-E-2009-0204
Decision Summary Title :	Agricultural Loans – 30 June 2009 Report			Date of Decision Summary:
Decision Summary Author:	Senior Administrator			Decision Summary: Public or Exempt? (If Exempt state clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written			Person Giving Oral Report:
Written Report Title:	Agricultural Loans – 30 June 200 Report			Date of Written Report:	6 November 2009
Written Report Author:	Senior Administrator			Written Report : Public or Exempt? (If Exempt State clauses from Code of Practice booklet)	Public

Subject: Agricultural Loans: to inform the Economic Development Assistant Minister for Agriculture on the current situation with regard to the loans.
Decision(s): The Assistant Minister noted the status of the Agricultural Loans administered by the Department.
Reason(s) for decision: Required six monthly review
Resource Implications: None
Action required: Assistant Director of Environmental Management and Rural Economy to send copies to the Finance Director and the Treasury and Resources Minister for noting.
Signature:		Position:
Date Signed:			Date of Decision:

Agricultural loans report

ECONOMIC DEVELOPMENT MINISTRY

Date: 6 November 2009

AGRICULTURAL LOANS – 30 June 2009 Report

INTRODUCTION

This report is to inform the Economic Development Assistant Minister for Rural Economy on the current situation with regard to Agricultural Loans.

Current Status

Table 1 - Agricultural Loan statistics as at 31 December 2008:

	31/12/2006	31/12/2007	31/12/2008
Total number of ‘live’ loans	103	85	68
Total number of borrowers	60	52	42
Total amount outstanding	£5,300,344	£3,942,647	£2,685,487
Number of loans in arrears	27	14	9
Number of borrowers in arrears	16	10	7
Total amount of arrears	£372,776	£217,318	£99,573

Table 2 - Analysis of loans in arrears as at 30 June 2009:

Detail

No. of

Borrowers

No. of

loans

Amount of

arrears

Cases with agreed way forward

£104,696

TOTAL

£104,696

This shows a significant improvement on the same time last year, when there were 10 borrowers accounting for 14 loans in total arrears of £243,553. ‘Cases with agreed way forward’ means that a repayment regime has been agreed with the Department to repay the outstanding loans.

Small Business Loans (not included in above tables)

Under the 1993 policies there was a scheme to assist small businesses with the purchase of items such as machinery and equipment. The assistance was usually in the form of part grant and part loan. The Scheme was suspended in 2000. At the 30 June 2009 the amount outstanding was £7,735 compared with £9,530 at the end of June 2008.

CONCLUSIONS AND RECOMMENDATIONS

The position with regard to the arrears has greatly improved in the last quarter. We are continuing to reduce the small number of borrowers who have long outstanding arrears through continuing to maintain a regular dialogue and renegotiating the pay back period to ensure genuinely affordable and realistic levels of payment as well as making more use of standing order mandates.

The Assistant Minister is invited to note the position.

Written by: Senior Administrator

Approved by: Assistant Director

Environmental Management and Rural Economy