The clock is ticking on NZ$84.5 bln of foreign debt

Título: The clock is ticking on NZ$84.5 bln of foreign debt

Autor: ofInterestNZ

Categoria: Notícias e política

Descrição: These are nervous times for banks all around the globe as they try to refinance debt they owe to banks in other countries. The international inter-bank credit markets virtually froze this week as banks stopped trusting each other. They were petrified in the wake of the shock collapses of AIG, Washington Mutual and Lehman Bros, the forced mergers of Merrill Lynch, Halifax Bank of Scotland and Wachovia, and the bailouts of Fannie Mae, Freddie Mac, Bradford and Bingley, Fortis and Dexia. Reserve Bank Governor Alan Bollard acknowledged the disruptions on global credit markets this week when he said some parts of the inter-bank markets had jammed up, which would be a significant concern if they remained frozen for longer than a few days. This matters for New Zealands banks because over the last 5 years New Zealand banks have borrowed heavily in these international credit markets on our behalf and have shuffled it through to us in the form of more and bigger mortgages, which have promptly use to boost house prices.

Duração: 2:51

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