Tell us how the credit crunch is affecting you
9th Oct 08, 12:36pm
by
We are hearing an awful lot about how the credit crunch is hitting financial markets in the Northern Hemisphere and how many large and small companies in Europe and North America cannot get short term finance to run their businesses or how banks are calling in delinquent home loans. But we haven't seen that much publicly here in New Zealand about how bank lending is going....yet. There are not mass mortgagee sales or tales of loans being called in. On the surface activity appears normal. But a few things have started to trickle through.
- ASB's Sovereign Home Loans has stopped lending where loan to value ratios are above 80% or where borrowers want 'Low Doc' loans where they don't have documentation to prove income.
- Asteron withdrew from home lending.
- GE Money Home Loans withdrew its offer of 2 and 3 year mortgage lending.
- PGG Wrightson says its attempts to raise bridging finance for its deal to buy half of Silver Fern Farms fell over because of the Credit Crunch
- Mataura Valley Milk's plans to build a NZ$90 million dairy factory near Gore in Southland were suspended because of financing difficulties
- Housing loan approvals fell by a record amount to a record low for a non-Christmas week in the week to October 3
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