Reports confirm that the parent Company Allied Farmers has increased the credit support facility for its subsidiary Allied Nationwide Finance.

In order to provide extra capital to cover the further losses on the impaired loans of its subsidiary Allied Nationwide Finance, the amount has been increased to $10 million from $5 million.

Following the review of ANF’s loan provisioning, the increase was vital.

It was found in the review, which was subject to auditing, that ANF was likely to witness a total loan provision of approximately $10.7 million for the second half of the year.

In the wake of a BB- rating from Standard & Poor’s, ANF does not qualify for the extended government retail deposit guarantee.

Figures reveal that the Company recorded an unaudited net loss after tax of $1.21 million for the six months to December.

Earlier it was believed that ANF would house some of the better performing loans and assets that the Allied Farmers took over from the unsuccessful Hanover group of finance.

Following the reverse takeover deal last December, the worst performing loans were transferred to a newly formed company called, Allied Farmers Investments.

According to Allied Farmers, the value of the Hanover acquired assets was currently worth $124 million, as compared to the $396 million, the value it had put on the assets when the shareholders casted their votes.