There will use of almost $180 million of taxpayers' money to bail out the failed finance company, Equitable Mortgages Limited.
The Auckland-based finance company has employed receivers which are covered by the Crown's deposit guarantee scheme.
Equitable Mortgages declared the right decision will be taken by the taxpayers. The ending of this schemes guarantee will be on December 31 in the upcoming year.
Peter Thomas, group chief executive alleged that in exacting we've looked at over $200 million in providing opportunities the last year. There was a written $5 million dollars in total in three loans.
There was no business in this period. Near about 6000 depositors are to be paid a total of $178 million.
People have been guaranteed by the treasury that they will get their money returned from the company which is owned by rich listers, the Spencer family.
The government guarantee may not be able to cover the multi-million dollars losses of the family.
There is a request made to the depositors to keep patient as the treasury will take time about the next couple of months working through information.
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