Finance Minister warns of risks to NZ | Stuff.co.nz

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Finance Minister Bill English is warning that New Zealand could be sideswiped by the darkening economic clouds over Europe.

Answering questions in Parliament today, he said the news from Europe continued to get worse.

"There are ongoing worries that a number of countries starting with Greece may be forced to default on their government debt," he said.

Europe accounted for 13 per cent of New Zealand's merchandise exports "so any economic weakness is not good news for New Zealand".

"There is also the possibility that the financial markets in which the New Zealand Government and New Zealand banks borrow could be disrupted at times."

However, he said banks were sounder than in 2008 and the Government had shored up its own position by keeping debt below 30 per cent, protected the most vulnerable, keep the export sector competitive and had done what it could to keep interest rates low.

Mortgage interest rates were almost half what they were in 2008.

"That is worth around $200 a week .... to a borrower with a typical mortgage," he said.

"On current trends we should be able to keep lower interest rates for longer."

- BusinessDay.co.nz

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Source: http://www.stuff.co.nz/business/industries/5616642/Finance-Minister-warns-of-risks-to-NZ

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