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International Law
: Australian Regulatory Compliance ReviewNew Zealand wholesale funding guarantee facility
The New Zealand Minister of Finance has announced that the Crown will offer a wholesale funding guarantee facility to investment-grade financial institutions in New Zealand.
The facility will operate on an opt-in basis, by institution and by instrument. New issues of senior unsecured negotiable or transferable debt securities will be eligible for inclusion.
A guarantee fee will be charged, differentiated by the credit rating of the issuer and the term of the security being guaranteed.
No instruments will be covered by both this scheme and the deposit guarantee scheme.
The main features of the facility are outlined in the attached briefing note.
Full post as published by Australian Regulatory Compliance Review on November 01, 2008 (boomark / email).
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