Mascot Finance customers covered by deposit guarantee scheme

Immediate Release

All eligible Mascot Finance depositors will get 100 per cent of the money they are entitled to under the Crown’s deposit guarantee scheme, Treasury Secretary John Whitehead said today.

Mascot Finance was placed under receivership today. It is the first financial institution approved under the deposit guarantee scheme to have triggered the guarantee since the scheme was established in October 2008.

“The deposit guarantee scheme was put in place to give New Zealand depositors confidence that their money would be secure in the event an approved financial institution failed. The Crown stands behind the deposit guarantee scheme, and Mascot Finance depositors can be assured that they will get back all of the money they are entitled to under the guarantee,” said Mr Whitehead.

“The Treasury will aim to pay out guaranteed deposits as soon as is practically possible. Straightforward claims should be able to be paid out shortly after a claim is due and payable, but more complicated claims can be expected to take longer. We appreciate the cooperation and patience of affected depositors.

“While the Mascot Finance receivership is clearly of concern to those involved, New Zealand’s financial sector remains sound, and people can continue to have confidence in it.”

Deposits covered by the guarantee include the principal sum deposited, along with interest accruing in accordance with the terms of the deposit up to $1 million per depositor, per institution. Deposits made and interest earned both before and after Mascot Finance’s approval are covered.

The Treasury website (www.treasury.govt.nz/economy/guarantee/retail/claims) has initial information for eligible Mascot Finance depositors on the process for claiming their entitlement. This information will be updated regularly as the Treasury works with the receiver appointed by Mascot Finance’s trustees. Mascot Finance depositors seeking information can also call free-phone 0508 283 283 during business hours.

Updated information on the expected timing for pay-outs will be made available on the Treasury website and the free-phone number in a few days.

Mascot Finance depositors who are not eligible for pay-out under the deposit guarantee scheme (e.g. financial institutions, non-New Zealand citizens who are also not New Zealand tax residents) will need to contact the receiver rather than the Treasury.

ENDS