6 deposit takers drop out of the NZ guarantee scheme

Treasury said late on Christmas Eve that six institutions with government guarantees had elected not to accept replacement deeds for the guarantee scheme and any deposits made after December 31 would not be covered by the scheme. They are: Aotearoa Credit Union, Asset Finance, Christchurch Emergency Services Credit Union, Farmers Mutual Finance, Mutual Credit Finance, and Rockforte Finance. Here's the detail in the Treasury statement below:

The Crown deeds of guarantee for Aotearoa Credit Union, Asset Finance, Christchurch Emergency Services Credit Union, Farmers Mutual Finance, Mutual Credit Finance, and Rockforte Finance will be withdrawn, effective from 1 January 2010. Approximately NZ$84 million of existing investments and deposits with those six institutions will still be guaranteed by the Crown until the earlier of the date the investments or deposits become due and payable or 12 October 2010 because they were made before the withdrawal of the Crown deeds of guarantee. New deposits or investments (including rollovers of existing investments or deposits) made with those six institutions on or after 1 January 2010 will not be guaranteed by the Crown. Replacement deeds have been sent to the 63 institutions that continue to participate in the Retail Deposit Guarantee Scheme. The replacement deeds for those institutions come into effect for new and rolled over deposits from 1 January 2010. In total, the Retail Deposit Guarantee Scheme guarantees $130 billion of deposits. Full details of institutions that have elected not to accept the replacement Crown Deed of Guarantee, together with details of those will continue to participate in the Retail Deposit Guarantee Scheme, are published on the Treasury website. A key change in the replacement deeds is that from 1 January 2010, deposit taking institutions that have signed replacement deeds can choose to issue investments or take deposits on a non-guaranteed basis, if they wish. Institutions must clearly disclose the guarantee or non-guaranteed status of securities in their offering documents.