Marac first in approval for extension

Marac Finance says it has been approved under the extended Crown retail deposit guarantee scheme.

Marac is a subsidiary of listed Christchurch firm Pyne Gould Corp. The extended scheme covers deposits by eligible investors to the end of 2011.

"Marac is pleased to have been among the first to be approved under the guarantee having met the qualifying criteria," chief executive Jeff Greenslade said. While the extended Crown guarantee would provide investors with comfort, Marac was confident it had the strength to stand on its own.

Under the extended guarantee, finance firms can offer both guaranteed and non-guaranteed deposits, the maximum amount covered by the guarantee to $250,000 per eligible investor for non-bank deposit takers.

The Government said on Wednesday it was ending its wholesale funding guarantee in April. The facility helped banks raise funding during the global financial crisis.

Finance Minister Bill English said it was no longer needed.

- © Fairfax NZ News