C VID MORATORIUM UPDATE - New Zealand - November 2020 - Rubix
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C VID MORATORIUM UPDATE - New Zealand Copyright © 2020 Rubix Data Sciences Pvt.Ltd. All rights reserved. November 2020
S. No. Country New Zealand
Measures Implemented -
1 Use of electronic means
Company Filings
Makes it possible for entities to use electronic means (including
electronic voting and the use of electronic signatures). It also allows
companies and other entities to hold meetings online, use electronic
Action taken as part signatures for powers of attorney, and make temporary exceptions
of the Measure to their own rules. They also allow certain Registrars and Ministers
to exempt businesses and organisations from requirements in 12
Acts of Parliament.
Targeted audience
Businesses
(e.g. Consumers/ Business/other)
Temporary
Start Date: May 15, 2020
End Date: March 31, 2021 — Expiry of provisions allowing
Permanence of Measures
meetings to be held online, temporary exceptions to be made to
(e.g. Temporary or Permanent) - entity rules, and Registrars and Ministers to create exemptions.
Start Date / End date May 15, 2021 — Expiry of provisions allowing the use of electronic
signatures when signing security agreements that contain powers
of attorney.
Source / Link https://www.companiesoffice.govt.nz/covid-19/
1Measures Implemented -
2 Mortgage repayment deferral scheme
Payment / Loan Repayments
New Zealand’s retail banks are able to defer repayments for
some mortgages until 31 March 2021. This applies to: residential
mortgages, agriculture loans, and SME loans.You have to be
Action taken as part financially affected by COVID-19. These loans will not be viewed
of the Measure as being defaulted. If you get a mortgage repayment deferral from
your bank you may be able to defer principal and interest payments
on your loan. Banks and customers have flexibility over the term of
any deferral. However, the Reserve Bank’s concessionary loan
guidance will expire on 31 March 2021.
Targeted audience
Agriculture loans, SME loans
(e.g. Consumers/ Business/other)
Permanence of Measures Temporary
(e.g. Temporary or Permanent) - Start Date: September 27, 2020
Start Date / End date End Date: March 31, 2021
https://covid19.govt.nz/business-work-and-money/financial-support/
financial-support-for-individuals-and-whanau/#mortgage-repayment-
deferral-scheme
Source / Link
https://www.rbnz.govt.nz/news/2020/08/reserve-bank-extending-
mortgage-deferral-scheme
2Measures Implemented -
3 Business Debt Hibernation regime
Insolvency
Business Debt Hibernation allows businesses affected by
COVID-19 disruptions to get a month of protection while they
Action taken as part talk to their creditors — during this period most creditors can’t
of the Measure take legal action to enforce their debts, eg applying for your
business to be liquidated. If your creditors agree, you can get
a further 6 months of protection
Targeted audience
Businesses
(e.g. Consumers/ Business/other)
Permanence of Measures Temporary
(e.g. Temporary or Permanent) - 24 December 2020 — Cut-off date for businesses applying to
Start Date / End date enter into debt hibernation
https://www.companiesoffice.govt.nz/news-and-notices/covid-19-
Source / Link related-business-relief-measures-extensions-and-expiry-dates/
3Measures Implemented - The COVID Response and Recovery Fund
4
Fiscal Stimulus
As part of Budget 2020 the Government established the CRRF and
set aside $50 billion to support a response to and recovery from
COVID-19. The CRRF is a funding envelope for budget management
purposes, rather than an actual sum of money ring fenced in the
Action taken as part Government's accounts. The fiscal implications of several new
of the Measure measures have been managed against the CRRF during April and
early May. As at 14 May 2020, the Government had committed $29.8
billion of the CRRF, of which $13.9 billion had been announced prior
to Budget Day as part of an ongoing response to COVID-19, leaving
$20.2 billion of funding remaining.
Targeted audience
Businesses, Consumers, workers
(e.g. Consumers/ Business/other)
Permanence of Measures
Permanent
(e.g. Temporary or Permanent) - Start Date: May 14, 2020
Start Date / End date
https://www.treasury.govt.nz/publications/summary-
Source / Link intiatives/summary-initiatives-covid-19-response-and-
recovery-fund-crrf-foundational-package-html
4Measures Implemented -
5 OCR unchanged at its historic-low level of 0.25%
Monetary Stimulus
At its meeting on 23 September, the Reserve Bank of New Zealand
(RBNZ) decided to leave the official cash rate (OCR) unchanged at
its historic-low level of 0.25%, in line with market expectations.
Moreover, it reaffirmed the possibility of bringing the policy rate
down to negative territory, among other measures, in order to
keep borrowing costs low and provide additional stimulus.
The RBNZ agreed to continue its Large Scale Asset Purchase
Programme of up to NZD 100 billion, to further lower retail rates.
Moreover, it reaffirmed that additional monetary stimulus may be
needed in the form of negative rates, low-cost funding to banks,
foreign asset purchases and interest rates swaps, as the country
Action taken as part tries to get back on its feet following the severe blow dealt by the
of the Measure pandemic. Risks to the outlook remain firmly tilted to the downside,
due the recent resurgence of new Covid-19 cases in Auckland and
the future spread of the virus both domestically and globally.
The Bank also discussed how it will sequence its deployment of
additional stimulus measures and concluded that, before bringing
interest rates to negative territory, it will resort to a Funding for
Lending Programme in order to bring credit to the economy at
a greater speed.
The next monetary policy meeting is scheduled for 11 November.
Targeted audience
–
(e.g. Consumers/ Business/other)
5Permanence of Measures
Temporary
(e.g. Temporary or Permanent) - Start Date: March 16, 2020
Start Date / End date
https://www.focus-economics.com/countries/new-zealand/
news/monetary-policy/rbnz-stays-put-in-september-0
Source / Link
https://www.rbnz.govt.nz/news/2020/03/ocr-reduced-to-025-
percent-for-next-12-months
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