finance

New Zealand’s government transfers Kiwibank assets to new company

Written by IhebQld

New Zealand’s finance minister, Grant Robertson, speaks about the “wellbeing” budget in Wellington, New Zealand, May 30, 2019. REUTERS/Charlotte Greenfield/File Photo

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WELLINGTON, Aug 22 (Reuters) – New Zealand’s government said on Monday it had transferred Kiwibank’s assets to a new state-owned company, since the lender no longer fit within the long-term plans for two state entities that currently own it.

Kiwibank, which is New Zealand fifth-largest retail bank, was owned by state-owned entities New Zealand Post, Accident Compensation Corporation and sovereign wealth fund New Zealand Superannuation Fund.

The government said in a statement that the transaction valued at NZ$2.1 billion will be done through a transfer of assets from the entities to a newly incorporated company that will also be owned by the state.

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It said the government will fund the purchase through a multi-year capital allowance. The purchase was already part of the borrowing programme published in 2022.

“The Government is fully committed to supporting Kiwibank to be a genuine competitor in the banking industry – ensuring the bank has access to capital to continue to grow on a commercially sustainable basis and offer a viable and competitive alternative for New Zealanders,” said New Zealand Finance Minister Grant Robertson.

($1 = 1.6194 New Zealand dollars)

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Reporting by Lucy Craymer, editing by Deepa Babington

Our Standards: The Thomson Reuters Trust Principles.

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