Banks: We will help struggling borrowers

Banks have promised to relax mortgage repayment conditions for struggling home-owners as part of a deal with the Government guaranteeing their overseas debts.

Announcing the wholesale funding guarantee on Saturday, Finance Minister Michael Cullen said he had been assured responsible borrowers could "count on support from their banks" during the hard times ahead.

Westpac bank told the Herald it had assured the minister it had dedicated more resources to helping people who were struggling. It had told the Government it would not force mortgagee sales lightly.

BNZ chief executive Andrew Thorburn wrote to Dr Cullen saying mortgagee sales were a "reluctant last resort" which would happen only after exhaustive efforts to get people back on their feet. He sent a similar reply to a query from the National Party.

To read the full NZ Herald story, click here

Posted: 3 Nov 2008

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