SCF payout made for 'commercial reasons'

BY TRACY WATKINS

Last updated 14:32 08/09/2010

Relevant offers

Money

Feltex class action swells by 800 Banks take $3b profit overseas National grid upgrades blamed for power price rises SFO looking into gold bullion fraud Hundreds lose money after trader dies Final wash-up leaves creditors nursing losses Online fraudster warning as ripoff cost grows Minimum wage rises - by 50 cents More investors claim tax losses Kiwis happier over their finances

Finance Minister Bill English has told Parliament the Government's payout to South Canterbury Finance investors was made for commercial reasons and saved the government about $100 million in interest payments.

In a ministerial statement to Parliament today, Mr English explained the background to SCF going into receivership and the reasons for the Government's deposit guarantee scheme, which resulted in a $1.6 billion payout to investors in the failed company.

It comes as the Government faces mounting questions over whether SCF should have been covered by the deposit guarantee scheme.

Mr English inisted that South Canterbury Finance remained in compliance with the deposit guarantee scheme deed "and as such there was no ability or cause for the Crown to withdraw their guarantee".

Read Mr English's full statement.

Ad Feedback

- © Fairfax NZ News