Finance company Marac Finance said its parent, Pyne Gould Corporation (PGC), would underwrite NZ$25 million worth of bad loans held by Marac because of "extraordinary market conditions."

"The property market has continued to deteriorate further with added uncertainty as to outcomes," Marac said.

"The PGC Board met yesterday and decided it was prudent to utilise the underwrite to NZ$25 million, for impaired property loans, at 31 December. This is a conservative approach at this time, but one which the Directors consider justified given the extraordinary market conditions," Marac said.

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