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Media StatementCrown's guarantee scheme covers Mutual Finance depositors

15 Jul 2010

All eligible Mutual Finance depositors will get the money they are entitled to under the Crown retail deposit guarantee scheme, Deputy Secretary of Financial Operations Philip Combes said today.

The trustee for Mutual Finance has announced the appointment of receivers to the company, which is a default that triggers the Crown's guarantee.

Eligible depositors with Mutual Finance will be contacted by the Treasury and provided with information about how to claim under the terms of the Crown retail deposit guarantee.

"We expect it could take 3 or 4 months to get necessary information about all depositors. When the receivers have provided the information to the Treasury, we will contact depositors and inform them about how to claim for repayment," Mr Combes said.

"We are working to repay eligible depositors in a timely manner and ask depositors to be patient while we get information about who is owed money and how much each depositor is owed. The Crown stands fully behind its guarantee commitments, and we expect an orderly process of payment to eligible Mutual Finance depositors," said Mr Combes.

Mutual Finance is a Auckland based financial institution with around 400 depositors and approximately $8 million in guaranteed deposits. The Crown guarantee does not cover any deposits after the default.

News media contact:

Angus Barclay | Senior Communications Advisor
Tel: +64 4 917 6146
Mob: +64 (027) 337 1102
Email: angus.barclay@treasury.govt.nz
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