ASB gees up quake city with $250m plan

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A $250 million investment programme by ASB to support businesses and people in Christchurch is to be announced this morning.

Prime Minister John Key and incoming ASB chief executive Barbara Chapman are to give details of the programme at a press conference this morning.

"Our support will help people, businesses and communities re-establish themselves, while at the same time encourage new businesses and employment opportunities in Canterbury," Ms Chapman said of the programme.

ASB's small to medium business customers who have been significantly affected by the February earthquake can access a $100 million rebuild fund. It will provide them with an interest-free loan for one year, followed by two years at a 1 per cent discount.

The same loan conditions will be made available to small and medium businesses in the city as part of a $100 million fund that aims to rebuild and expand business in Christchurch.

Existing and new businesses can access the loans if their future cash flows are expected to be financially viable within 12 to 24 months, among other conditions.

ASB's personal customers will also benefit from the programme.

A six-month repayment holiday is to be offered to ASB, BankDirect and Sovereign home loan customers whose properties were significantly damaged in the earthquake.

They will also be given a one-year interest discount of 1 per cent off the variable rate or 0.5 per cent off the fixed rate. Concessions are also available to personal loan and credit card customers.

A further $1 million will be given to community groups who were negatively affected by the earthquake.

ASB is also opening two new branches in Christchurch, which it says demonstrates its commitment to the city.