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Tuesday, 13 December 2011

Export Bank for New Zealand?

In the latest issue of the Exporter (November/December 2011), the Director of the New Zealand School of Export, Dr Romuald Rudzki floats the idea of an export bank for New Zealand.  He says:
'What we need is a comprehensive economic plan founded on an export-based economy.  One which includes all the essentials such as the use of the Superannuation Fund to invest in New Zealand export companies..., an Export Bank that has a different view than the ludicrously high interest rates of the Reserve Bank, more funding for NZTE both here and abroad, and major tax breaks for income earned overseas.' (p.43)

Dr Rudzki says that many countries have an export bank which specialises in support for the exporter.  Four  examples of countries that have an export bank are:
Turkey - Turk Eximbank at: http://www.eximbank.gov.tr/eng/
Malaysia - EXIM Bank of Malaysia at: http://www.exim.com.my/
USA - Export-Impport Bank of the the United States at: http://www.exim.gov
Vietnam - Vietnam EXimbank at:  http://www.eximbank.com.vn/

Since the private sector banks in New Zealand don't see a role for themselves in this area, Dr Rudzki suggests that Kiwibank could become the bank for exporters.   Food for thought for both government and the banking industry here in New Zealand....

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