Crown Wholesale Guarantee Facility
Scope of Appropriation
This output class is limited to the implementation and operation of the Crown's Wholesale Guarantee Facility.
Significant Work Completed During 2009/10
- The Crown Wholesale Guarantee Facility was terminated on 30 April 2010 reflecting that market conditions had stabilised to a degree that enabled participants to access funding markets without reliance on a Crown guarantee.
- Regular reviews of pricing of the Facility to ensure that it continued to meet its objectives without exposing the Crown to unnecessary risk or distorting market incentives.
- Regular reporting on guaranteed and unguaranteed issuance was developed to support monitoring (usage and pricing).
| Performance Dimensions | Target | Performance for 2009/10 | ||||
|---|---|---|---|---|---|---|
| All policy outputs comply with the Treasury's Quality Standards for Policy Advice, as assessed by the Minister three times during the year. | Rated as meeting and frequently exceeding expectations |
Not assessed in 2009/10. Refer to page 60 for further information on the application of the policy standard during 2009/10. |
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| No unnecessary delays in processing applications. | Achieved |
Achieved. All applications processed within two weeks and a significant proportion within one week or less from the date of application; with the exception of the initial applications, which required a review of programme documentation. |
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| Development and implementation of an overall plan for managing the Crown interests including default events. | Achieved |
Achieved. See below, noting that payout by the Crown is only required on the maturity date of the guaranteed issue. |
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| Active monitoring of guaranteed institutions is undertaken to minimise Crown exposure. | Achieved |
Achieved. The likelihood of default by entities that have used the Crown guarantee under the Crown Wholesale Guarantee Facility is assessed as minimal. Prudential monitoring is being undertaken by the Reserve Bank of New Zealand. |
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| The Treasury actively manages the Crown interests in the event of a specific default. | Within seven days of default |
Achieved. No default event occurred in relation to any of the entities participating in the Crown Wholesale Guarantee Facility. |
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| 2009/10 Actual $000 |
Supp. Estimates - Voted $000 |
Main Estimates $000 |
2008/09 Actual $000 |
|
|---|---|---|---|---|
| Expenses | 141 | 141 | 1,540 | 849 |
| Funded by: | ||||
| Revenue Crown | 134 | 134 | 1,540 | 827 |
| Other Revenue | 7 | 7 | - | 22 |
