Marac approved for extended guarantee (Update 1)
11th Mar 10, 5:45pm
Treasury has announced that MARAC Finance Limited has been approved for the extended Crown guarantee scheme, its first such approval. (Updated with comment from the company.) This extended guarantee period starts on October 12, 2010 when the existing arrangements expire, and runs until December 31, 2011. Marac, who currently has a credit rating of BB+, has signed up for the guarantee which will cost it a fee of 1.2% for all guaranteed funds if it maintains that rating. Marac currently offers an option to depositors - with or without the benefit of the Crown guarantee. Depending on the term, unguaranteed deposits attract rates higher by between 0.50% and 1.50% under present arrangements. A spokesperson for the finance company has said that they will be reviewing their term deposit rates early next week "as a result of the approval". A full and comprehensive list of term deposit rates are here.