90 seconds at 9am: Revised leaky buildings bailout due; RBNZ report due
17th May 10, 8:44am
Bernard Hickey details the key news overnight in 90 seconds at 9am in association with BNZ, including news the government is set to release its revised plan to solve the leaky buildings crisis later on Monday. The NZHerald and the Dominion Post are reporting the plan will be different and slightly more generous than the initial offer to councils and homeowners, which would have seen homeowners take on 65% of the burden, councils take 25% and the central government the final 10%. It could come in the form of interest free loans or simple grants. Meanwhile later this week the Reserve Bank will release its Financial Stability Report on the banking and finance company sectors. It will report on how banks are lending now they have to raise more funds locally. There are signs that bank lending is slowing and becoming more expensive, at least partly due to the push by both the banks and the Reserve Bank to raise more funds locally and for longer terms. Also, markets will focus on the euro, which weakened again late on Friday. Greece is looking at investigating the role of investment banks' in the crisis. Meanwhile, Britain may increase its GST (Value Added Tax) in a move to control its budget crisis.