TAXPAYERS are forking out more than $79 million to investors in failed finance companies covered by the government deposit guarantee, with many millions more likely to come.
Total provisions in the government books for potential finance company collapses stands at almost $890m on top of the money already paid out.
Treasury announced yesterday it had repaid depositors $79.1m of principal and interest following the collapse of six finance companies. It has paid out to investors in Mascot Finance ($69.4m, covering 99 per cent of investors) Strata Finance ($0.3m, tiffany heart necklace no claims outstanding) and Vision Securities ($9.4m, covering about a third of depositors).
But the balance owed to Vision depositors (about $20m) plus almost as much owed to investors in three other failed finance companies suggests about $40m more could be http://www.wubags.com/handbags-y/ paid out.
Treasury is still determining how much of the money owed to investors in Rockforte Finance, Viaduct Capital and Mutual Finance is covered by the deposit guarantee.
Treasury pays out the principal and interest to depositors covered by the guarantee scheme but then stands in their place should the finance company receivers recover any money. Treasury could potentially claw back some of the $79m paid out.
ed hardy clothingHowever, that is before the $887m provision in the government accounts made to provide for losses considered "more likely than not to occur" in the future from finance company failures, covered by the retail deposit guarantee scheme.
Treasury has not given any indication of which companies it thought were likely to fail.
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