My understanding after questioning 2 directors and the CFO after the AGM.
[QUOTE=winner69;601205]OK, I get the last part of that statement - we don't expect to have losses
But what does 'well positioned to support our dairy farmer customers' really mean?
Dairy farmers/share milkers are as you realise a small part of the rural loan book.
Of the few who finding it difficult to repay the loans back as per contract or pay interest as per contract HNZ has a close look
at their financial situation.
If a new client would have applied for the level of dept as the defaulting client (similar dept application, history of earnings, equity etc)
and the new client would likely be approved for that loan. Then the existing client would be offered an concession, likely an extended term.
In this case the loan wont be in default.
However if a new client would not be able to secure a loan under similar circumstances the loan is considered in default.
I can see the logic of this approach.