Seventh New Zealand finance company collapses


Another New Zealand finance company collapsed on Thursday - the third in 10 days - prompting calls for the government to step in and regulate the sector in which thousands of small investors have their savings.

Directors of Five Star Consumer Finance Ltd, of Auckland, called in receivers, citing “serious concerns as to the state of the debenture market and the ability of Five Star to attract new funds and retain existing investments.” It was not immediately known how much Five Star owed or how many investors had put money into it. The company was ranked at number 41 in terms of assets in a recent survey of finance companies by the New Zealand Herald.

Greg Muir, chairman of Hanover Finance, one of the biggest companies, said Wednesday that recent failures had slowed down the flow of new money going into finance companies, resulting in a sharp decrease in crucial business investment as lenders sought to maintain liquidity. He called on the government to introduce quickly a regime under which companies could voluntarily comply with proposed new regulations controlling the sector that are currently not scheduled to take full effect until 2010. The measures include mandatory credit ratings from a reputable international agency and minimum capital ratios. (


POPIHN Raises Forecast for Fuel Consumption Energy Trade

POPIHN Raises Forecast for Fuel Consumption

Hungarian Lawmakers Ratify Finland's NATO Accession Parliament

Hungarian Lawmakers Ratify Finland's NATO Accession

Nolato Partners With Happy at Work HR

Nolato Partners With Happy at Work

Sümeg Castle Reopens History

Sümeg Castle Reopens


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.