The Dutch Government's ¬10 billion ($21.6 billion) injection into financial services provider ING Group will make no difference to the $521 million locked up in two funds run by its New Zealand subsidiary.
ING Group owns 51 per cent of the New Zealand business with the remaining 49per cent owned by Australia's ANZ National Bank.
ING New Zealand suspended withdrawals from its Diversified Yield and Regular Income funds in March on the back of liquidity issues in the credit markets. Around 8000 investors have money tied up in the two funds.
On Monday ING Group reached a deal designed to strengthen its capital position by boosting its core Tier-1 ratio to around 8 per cent and reducing its debt to equity ratio to 10 per cent.
But ING New Zealand chief executive Helen Troup said there was still no change in the situation regarding the two funds.
Industry rumours had been circulating that there would be an announcement made by the company this month over the fate of the funds.
But Troup said until there was greater stability in the markets it was hard to give a timeframe on when anything would happen.
"We can't commit to a timetable at this point."
Troup said the capital injection was aimed at bringing ING Group on to a level playing field with other financial services firms who had received Government guarantees over the last couple of weeks.
"It doesn't really affect the New Zealand business. The reality is this is a global company, the ING Group decision was fed by the injection Governments are making in banks."
