ANNOUNCEMENT 01 Nov 2008In November 2008, the government of New Zealand announced a change in private-sector financial support.
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the oficial website of the New Zealand's Treasury < http://www.treasury.govt.nz/economy/guarantee/wholesale >
The wholesale funding guarantee facility is designed to:
The facility will be available to financial institutions that have an investment grade credit rating (BBB- or better), and have substantial New Zealand borrowing and lending operations. The scheme does not include non-financial (eg corporate and local authority) issuers. This focus on financial intermediaries is consistent with the approach to wholesale guarantee facilities which has been adopted in other countries.
Branches of foreign banks would be included among the institutions eligible for a wholesale guarantee scheme, but only in respect of their New Zealand dollar issuance. Eligibility is restricted to those branches' issuance of New Zealand dollar securities to avoid any risk of any New Zealand guarantee supporting the funding of the wider group.