PGG Wrightson Finance joins Extended Retail Deposit Guarantee Scheme
PGG Wrightson Finance has been accepted into the Extended Retail Deposit Guarantee Scheme.
The Extended Retail Deposit Guarantee Scheme will come into effect on 12 October 2010, (replacing the current New
Zealand Guarantee Scheme which expires on 12th October 2010), and will carry through to 31st December 2011.
PGG Wrightson Finance became eligible to apply for the Extended Retail Deposit Guarantee Scheme when it received a BB
(Stable) rating from international rating agency Standard & Poor’s in February this year.
Chief Executive Mark Darrow commented: “Entering the Extended Retail Deposit Guarantee Scheme gives us a longer period
to transition back to a ‘normal’ situation where there is no guarantee scheme underpinning the sector. We have
maintained a very consistent 77% reinvestment rate over the last 3 years – right through the period of significant
regulatory change.”
“We are very fortunate in that we have long-standing and direct relationships with the vast majority of our investors,
who have shown strong loyalty and support. In fact, our customer deposit base continues to grow, with growth
particularly strong over the last 6 months.”
“We were the first finance company to extend our product range to include investments not covered by the Retail Deposit
Guarantee Scheme from January 2010. This was advantageous for two reasons: It positioned the company for the inevitable
transition to a non-guaranteed environment where the merit of the company is the main determinant of investment
decisions; and it provided our customers with choice – to either invest on a guaranteed or non-guaranteed basis.”
“We have certainly appreciated our positive interactions with both the Reserve Bank and NZ Treasury in working through
these transitional arrangements, and in providing general market support and stability.”
ENDS