Agricultural clients of the Bank of Montreal can defer payments on loans because of the floods and crop damage across Western Canada this year.
Producers directly affected by flooding and companies that depend on agriculture will be eligible for the financial flood relief program.
“The crux of the program really is deferral of principal payment,” said BMO’s national manager of agriculture, David Rinneard.
For example, if a producer has a large annual payment, or several payments due this fall on a loan, BMO will allow its clients to extend the duration of the loan. “That payment in essence gets tacked on to the end. So if they had a five year loan, now it’s a six-year loan.”
He expects this program will be the bank’s largest program of its kind, given the extent and severity of flooding in 2010.
The deferral program will run until November 30, 2011.
