NZ financial markets rebound
(11 March 2010 – New Zealand) The Finance Minister of New Zealand, Bill English, has said that now the country’s financial markets are ‘back to normal’ the government guarantee, set up during the global financial crisis, will be phased out at the end of next month.
Speaking at the New Zealand- Australia Investment Forum in Auckland this week, Mr English said that the government would be withdrawing the government guarantee for banks, but admitted that it could be reinstated if the banking markets soured again.
Mr English said signals that the financial markets have recovered did not mean that the global economy wouldn’t experience turbulence, as evident in Greece.
The finance minister said that interest rates are likely to go up towards the end of the year and banks are cautious, however they can now raise money overseas without a government guarantee.
New Zealand’s wholesale funding guarantee was set up in November 2008 when the liquidity crisis hit global credit markets.
Mr English said that New Zealand's banks were now successfully raising funds in the wholesale market without using the guarantee and the government did not expect there would be any further use of the facility between now and the end of April.
Mr English said signals that the financial markets have recovered did not mean that the global economy wouldn’t experience turbulence, as evident in Greece.
The finance minister said that interest rates are likely to go up towards the end of the year and banks are cautious, however they can now raise money overseas without a government guarantee.
New Zealand’s wholesale funding guarantee was set up in November 2008 when the liquidity crisis hit global credit markets.
Mr English said that New Zealand's banks were now successfully raising funds in the wholesale market without using the guarantee and the government did not expect there would be any further use of the facility between now and the end of April.
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