Okay, you've achieved your goal and my sensibilities are hurt.
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For thoses in doubt- THE SCFHA ARE NOT COVERED read below from the TREASURY WEBSITE
Media Statement: All South Canterbury Finance depositors to be repaid under Crown guarantee
31-Aug-10
All depositors and stockholders on South Canterbury Finance Ltd’s register of debt securities will be repaid by the Crown, Acting Secretary to The Treasury Gabriel Makhlouf said today.
The Trustee for South Canterbury Finance has appointed receivers to the company, which is a default triggering the Crown’s guarantee.
"Depositors and stockholders do not need to make a claim to The Treasury because the Trustee has made a claim on* their behalf.* All depositors and stockholders on South Canterbury Finance’s register will be repaid," Mr Makhlouf said.
"The Trustee has been nominated as the eligible creditor under the terms of the Guarantee and the Crown today paid the Trustee in full. The Treasury and the Trustee are cooperating to promptly repay all registered holders of South Canterbury Finance debt securities," Mr Makhlouf said.
"When an up-to-date register of debt security holders is available, the Crown and the Trustee will arrange prompt payment to everyone on the register. We expect an orderly and prompt payment to South Canterbury Finance depositors and stockholders," Mr Makhlouf said.
Because the Trustee has been nominated as the eligible creditor, some depositors and stockholders who may not have previously been repaid will now be repaid by the Crown. While this will incur an upfront cost, it is cheaper overall for the Crown because it facilitates immediate payout of depositors and avoids the need for the Crown to make future interest payments. Criteria relating to citizenship and tax residency do not apply and depositors and stockholders will not be assessed using those criteria. The criteria for being repaid is that you are on the South Canterbury Finance register of debt securities at the date of default. Ordinary shares and preference shares issued by South Canterbury Finance are not eligible for repayment. Debt securities eligible for repayment include: call deposits, term deposits, non-guaranteed deposits, debentures and bonds issued by South Canterbury Finance.
South Canterbury Finance is a Timaru based financial institution with around 35,000 depositors and approximately $1.6 billion in deposits.
"It is important to remember that the Crown guarantee is not designed to prevent a company from defaulting; it is designed to protect depositors and stockholders affected by a default," said Mr Makhlouf.
Depositor information:
Free phone: 0800 222 061
Web: http://www.treasury.govt.nz/economy/.../retail/claims
Media contact:
Angus Barclay | Senior Communications Advisor
Tel: +64 4 917 6146
Can someone divide $1.7 billion by the number of taxpayers? I want to know how much this has cost me.
A bit over half a weeks wages for your average check out operator.
Give it a rest guys! I hardly think SCF is going to present the Treasury with a total loss, the estimate from those that should know is $600m, $150 each. Let alone the fees paid into the scheme!
I was and still am a big fan of the Government guarantee, it should be made permanent. In 2008 all the talk was about how NZ was one of the few developed countries without one. We all know if one of the big Aussie banks were to let their NZ operation fall over it would be bailed out by the government. The guarantee scheme forced them for the first time to pay for this implicit guarantee and boy did they hate it!
Once you included the foreign owned banks you had to include all the NZ non-banking deposit taking sector otherwise what was left of NZ finance inc would have been destroyed and make NZ even more of a branch office causing even more profits to flow overseas.
The guarantee scheme will probably end up breaking even in the long run and even if it doesn't $150 per person is a small price for everyone to pay to protect our economy, national interest and to allow an orderly wind down of all our excesses. Let alone the stress and poor health it has saved people.
Make the second version of the scheme (that had the benefit of hindsight and the refinement of time) permanent!