NEW N.Z. POST OFFICE BANK TO GET CASH INJECTION
The new state-owned Post Office Bank
Ltd (POB) will receive 135 mln dlrs from the government to
boost its assets and will be capitalised at 300 mln dlrs of
which 250 mln will be provided immediately, according to the
agreement establishing the POB.
    The agreement is the first to be finalised between the
government and nine new state-owned corporations which start
business at midnight.
    It was announced in a joint statement by Finance Minister
Roger Douglas, Postmaster General Jonathan Hunt and POB
chairman Robin Congreve.
    The POB will take over the former Post Office Savings Bank
and the 135 mln dlr cash injection will match assets with
liabilities.
    POB director Bill Birnie told reporters that assets
totalled 2.7 billion dlrs before the injection.
    The ministers said the government will continue to
guarantee existing liabilities and will extend its guarantee to
new liabilities assumed before June 30, 1988.
    Congreve said the POB will operate as a retail bank and
most of its lending will be for housing.
 REUTER
