Treasury Secretary John Whitehead has announced a drop in fees for the Wholesale Funding Guarantee Scheme, effective from today.
The fee for non-New Zealand Dollar issues with terms of more than one year drop by 20 basis points. Other fees remain unchanged.
The Wholesale Funding Guarantee Scheme exists to enable New Zealand financial institutions to access international markets in a risk-averse global environment where many other governments have offered guarantees on their banks’ wholesale debt.
The downwards revision is part of a regular review to take into account the changing market environment. The pricing schedule was last changed on 27 January 2009.
The new pricing schedule, along with other operational guidelines for the scheme, is available on the Treasury website at www.treasury.govt.nz/economy/guarantee/wholesale/operationalguidelines
| Credit Rating of issuer | 1 Year or less (bps per annum) |
More than 1 year (bps per annum) |
|
|---|---|---|---|
| NZD | non-NZD | ||
| AA- and above | 70 | 90 | 70 |
| A- to A+ | 130 | 150 | 130 |
| BBB- to BBB+ | 180 | 200 | 180 |
ENDS
Contact for Enquiries
Bryan McDaniel | Acting Manager, CommunicationsTel: +64 4 917 6268
Mob: +64 (0)21 228 0747
Email: [email protected]
Last updated:
Wednesday, 16 February 2011