The Treasury has announced many amendments in the retail deposit guarantee scheme by making it flexible for institutions and protecting the current investors from its adverse impacts. However, path has been closed for the institutions to join the scheme that turned down the proposed changes.
Brian McCulloch, the Treasury’s director of financial operations added, “Existing investments by eligible depositors are not affected by these changes; they continue to benefit from the current Crown guarantee.”
The Treasury would issue Deeds of Guarantee containing amended terms and conditions. The amended deed would provide both guaranteed and non-guaranteed investments and more flexibility to avoid defaults by giving additional timeframe.
McCulloch further informed, “The Crown stands fully behind its guarantee commitments and the safety net remains in place.” He expressed that new amendments would be effective from January 1 next year while institutions participating in the scheme are required to take a final decision to accept the terms until December 4.
Mr. McCulloch added that setting timing deadline would improve operation efficiency of the scheme by avoiding default cases.