| ||AWB sets nominated Estimated Pool Returns|| ||
AWB Limited today set the nominated Estimated Pool Returns (EPR) for the 2002/2003 AWB National Pool.
AWB Managing Director Andrew Lindberg confirmed the prevailing EPR, as set by AWB National Pool on 28th October 2002, will be set as the nominated EPR.
"The nominated EPR serves as the basis to calculate payments on the four AWB National Pool Payment Options,” Mr Lindberg said.
The nature and timing of payment will vary according to the products selected by growers;
- Harvest Loan - majority of cashflow at harvest via a loan based on 90% of nominated Estimated Pool Return (EPR), less estimated costs.
- Advanced Payment - majority of cash at harvest in the form of a payment, rather than a loan. Initial payment based on 81.8% of the nominated EPR, less estimated costs.
- Deferred Payment - majority of cashflow provided in July in the form of a payment, not a loan. To provide some working capital, growers will receive 20% of the nominated EPR, less estimated costs at delivery.
- Flexible Drawdown Loan - establishes a credit limit based on 90% of nominated EPR, less estimated costs, with a minimum of 20% of the limit automatically drawn down at harvest, and the ability to draw against the remainder as required.
The Harvest Loan and Flexible Drawdown Loan are loans, and therefore not subject to GST. Growers will incur a GST liability when AWB National Pool distributions are used to repay the loan. AWB suggests growers set aside funds to meet these obligations as they occur. The Advanced Payment and Deferred Payment products are payments for grain delivered and therefore subject to GST. Growers will incur a GST liability when they receive the payment.
All four products are non-recourse. A non-recourse loan means if the distributions from AWB National Pool do not repay the loan, the grower will not be required to make up the difference. A non-recourse payment means growers can keep any part of the payment they receive. In effect, this non-recourse feature provides growers with the guaranteed minimum amount.