RTTNews - The New Zealand Government would be extending its Retail Deposit Guarantee Scheme up to December 2011, the Finance Minister Bill English said Tuesday.
The current scheme expires on October 12, 2010, and the new scheme beginning on October 13, 2010 would be valid up to December 31, 2011.
The planned extension will help maintain confidence in New Zealand's financial institutions while achieving an orderly exit from the scheme. It will allow both depositors and institutions to adjust back to a more normal business environment, English said.
Depositors and institutions have more than a year of advance notice before the scheme changes and then a further 14 months under the extended scheme until the Crown guarantee ends on December 31, 2011, English pointed out.
The Retail Deposit Guarantee Scheme was introduced as a direct response to the global financial market crisis. The retail guarantees helped maintain confidence in the country's finance institutions. Concerns regarding the stability of the scheme are now abating, English added.
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