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Media StatementCrown's guarantee scheme covers Viaduct Capital Limited depositors

14 May 2010

All eligible Viaduct Capital Limited depositors will get the money they are entitled to under the Crown retail deposit guarantee scheme, Treasury Director of Financial Operations Dr Brian McCulloch said today.

The trustee for Viaduct Capital Limited has announced the appointment of receivers to the company. That constitutes a default event under its Crown Deed of Guarantee, triggering the Crown’s guarantee.

Eligible depositors with Viaduct Capital Limited will be contacted by the Treasury in about six weeks and provided with information about how to claim under the terms of the Crown retail deposit guarantee.

Viaduct Capital is an Auckland based financial institution with around 110 depositors and approximately $7.8 million in deposits. The Crown guarantee does not cover any deposits made after 20 April 2009, when Crown guarantee was withdrawn from Viaduct Capital.

"The Crown stands fully behind its guarantee commitments, and we expect an orderly process of payment to eligible Viaduct Capital Limited depositors," said Dr McCulloch.

"It is important to remember that it is the eligible depositors that are guaranteed rather than the company. The Crown retail deposit guarantee scheme was introduced to maintain depositor confidence by protecting eligible depositors".

"Over the life of the scheme, exits, mergers and wind-downs will occur. This is normal financial sector activity and is expected to continue," said Dr McCulloch.

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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