New Zealand's financial firm South Canterbury Finance has sought for a receiver of its assets, after it failed to complete its recapitalization and restructuring.

It is indeed frightening news for the investors of the Company. But, receivership doesn't mean that the depositors will run out of their money. Also, there is no harm to funds of the depositors bearing no guarantee. It seems it would not affect anybody much and would not pose a threat to the growth of economy.

As believed by Standard and Poors, there is no risk to Government's sovereign credit rating getting degraded. Such a confidence has also been shown by the Finance Minister, who stated that more people would support the proposal of spending $1.6 billion of taxpayer money for the failed finance firm.

It would leave an impact on the farm prices, as South Canterbury has given loans to a significant large number of South Island farms, and with farm prices already in bad state, they are bound to decline more.

In New Zealand, the loans given to farms are worth $47 billion. People are associating the case of South Canterbury Finance with Lehman Brothers, which, however, is not so.

"Investors' confidence in such Companies is now simply non-existent", said Interest. co. nz's Bernard Hickey.