23 Dec 2008

Debt guarantee issued for BNZ

2:28 pm on 23 December 2008

The Bank of New Zealand has received approval to issue wholesale debt guaranteed by the Crown.

It is the first New Zealand bank to be approved under the guarantee, which was announced by the Government on 1 November as a response to the global financial crisis.

A Crown guarantee for retail bank deposits was announced on 12 October.

Treasury says the guarantees are designed to help New Zealand financial institutions deal in international markets where investors are now averse to taking risks. Many other governments have offered similar guarantees.