Fiscal aftershocks (New Zealand)

The earthquake that hit Christchurch in February has left the city’s university in financial trouble. The New Zealand Herald said the University of Canterbury “will rely on its implicit government guarantee to meet payments to investors on its unrated 10-year bonds after the earthquakes scared off students, seriously denting [its] finances”. It is now in talks with the Tertiary Education Commission. “The university’s case for support envisages a return to surplus within five to seven years,” said Rod Carr, Canterbury’s vice-chancellor. “However, this will depend on student enrolments.” Canterbury broke new ground in 2009 by becoming “the only university to tap investors via a debt sale”, the Herald said.

Source: The Times Higher Education