Fed: RBA official s cheap home loan sparks political row

AAP General News (Australia)
04-11-2000
Fed: RBA official s cheap home loan sparks political row

The federal opposition has condemned the Reserve Bank for giving one of its highly-paid
senior officials a discount home loan -- while again lifting interest rates for ordinary
Australians.

But Treasurer PETER COSTELLO has accused Labor of hypocricy, because it didn't object
to similar loan favoritism when it was in power.

The bank's refused to comment on reports the loan was given to deputy governor STEPHEN
GRENVILLE, whose salary package exceeds $300,000.

But its annual report confirms a single home loan has been extended to either its Governor,
IAN MACFARLANE, or his deputy.

The revelation comes less than a week after MR GRENVILLE and the eight other board
members approved a quarter per cent interest rate rise, the third increase in five months.





Banking industry sources say the Reserve Bank is no different from other banks in offering
staff discount loans as part of salary packages.

AAP RTV ss/mfh/amt/jn/sub/dmc

KEYWORD: RESERVE (CANBERRA)

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