Taxpayer-funded Kiwibank has invested around $6 million in troubled British lender Northern Rock, which was last week bailed out by the Bank of England.
Spokesman Bruce Thompson confirmed the government-owned entity holds around $6 million in bonds issued by Northern Rock. Kiwibank was “very confident” its investment was safe, he said.
“We’ve got a very small involvement with bonds through Northern Rock,” Thompson said. “That represents about half a percent of our cash and investment portfolio.”
Thousands of depositors started a run on Britain’s biggest mortgage lender, with 3 billion at stake.