PGC to underwrite NZ$25 mln of bad loans at Marac
15th Feb 09, 12:50am
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. * This article was first published on Friday in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.