Kiwibank talking to Govt about need for more capital
Kiwibank is talking to the Government about the capital injection it needs to expand its business, Prime Minister John Key says.A partial share float would be one way to get it but Mr Key last week ruled that out.He reiterated his position today, saying t
Kiwibank is talking to the Government about the capital injection it needs to expand its business, Prime Minister John Key says.
A partial share float would be one way to get it but Mr Key last week ruled that out.
He reiterated his position today, saying the bank would "remain under 100% government ownership under my leadership."
Mr Key said there were logical reasons to keep it that way.
"If you did a partial float you would raise capital but the government guarantee that's there would be broken and it might need more capital than you think," he said.
The Kiwibank board had been in discussions with Finance Minister Bill English for "quite some time" about more capital, Mr Key said.
"That's something we're working our way through. I've only had a very top line business case put to me...I can't tell you what capital requirements they now think they need," he said.
A figure of $100 million has been mentioned but Mr Key said he had the impression Kiwibank wanted more than that.
Asked about asset sales generally, Mr Key repeated the government's intention to review its policy not to sell anything during its first term in office.
"It was a first term policy so we need to kick the tyres," he said. "But Kiwibank is going to stay in government ownership."
Mr Key said he wasn't ideologically opposed to selling state assets but there would have to be good reasons for selling any.
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