Wednesday, June 18, 2008

NZ financial meltdown continues


Dominion Finance Holdings Ltd


Dominion Finance today became the 21st New Zealand finance company in the past two years, and the 18th in the past two years, to get into difficulty.

The company's total of debentures fell 22 percent to $276 million in the year to March, which meant that there was a net outflow of $79 million of investors' money.

As a result of its liquidity problem, the company today said it was investigating a moratorium on payments.

This means that a total of $2 billion of investors' money is now in question in New Zealand.

  • Despite the economic downturn, New Zealand is to retain its Aaa sovereign credit rating, Moody's said today.

    The ratings agency said in its regular review that the country's high per-capita income, institutional strength and sound government balance sheet continue to underpin the rating.


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