Skip to content
Subscriber Only

New Zealand State Pays $1.1 Billion as Lender Fails

New Zealand’s government will pay NZ$1.6 billion ($1.1 billion) to bondholders and depositors of failed lender South Canterbury Finance Ltd. in the country’s biggest bailout under its state guarantee program.

Today’s payment to the lender’s trustee falls under a program that guarantees NZ$133 billion in assets, said Angus Barclay, a Treasury spokesman. South Canterbury, which focuses on small businesses and farm financing, joins seven other state- guaranteed institutions that have defaulted since March 2009, the Treasury said.