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Media Statement: Eligible deposits with Equitable Mortgages protected by Crown guarantee

26 Nov 2010

Eligible depositors with Equitable Mortgages Limited can claim repayment from the Crown, Treasury Deputy Secretary Financial Operations Phil Combes said today.

The Trustee for Equitable Mortgages has appointed receivers to the company, which is a default triggering the Crown’s guarantee under the terms if the Extended Retail Deposit Guarantee Scheme.

"The Treasury is working with the receivers to ensure we have sufficient information. We anticipate that information gathering will take about 8 weeks, given the Christmas and New Year holidays, and ask depositors to be patient. Depositors can be assured that the Crown stands behind its guarantee," Mr Combes said.

Equitable Mortgages is an Auckland based financial institution with around 6,000 depositors and approximately $178 million in Crown guaranteed deposits.

The company also had approximately $12 million of non-guaranteed deposits that it marketed as "Classic Debentures". Mr Combes said the Crown would not repay deposits that it had not guaranteed.

ENDS

See: Claims or Repayment Process

Media contact:

Angus Barclay | Senior Communications Advisor
Tel: +64 4 917 6146
Mob: +64 (0)27 337 1102
Email: angus.barclay@treasury.govt.nz
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