25 Apr 2009

Finance company investors paid by Govt scheme

10:44 am on 25 April 2009

The Government's retail deposit guarantee scheme is to pay out investors in Strata Finance, which is in the process of winding down.

Treasury Secretary John Whitehead says the guarantee was triggered earlier this month when the company was unable to pay out one of its depositors.

Strata Finance has 21 investors and $448,000 in deposits.

Mr Whitehead says the scheme was introduced to maintain depositor confidence, not to prevent the failure of financial institutions, and investors will get all their money.

A two year guarantee on domestic deposits was announced by the Government on 12 October 2008 and extended to cover offshore borrowing by banks on 1 November.