Finance Minister Nicola Willis says the government decided to get the present value of its money back sooner than the expected 2036. Photo: RNZ / Samuel Rillstone
The government is pressing ahead with its plans to sell the debt it has in Chorus, in order to free up money for capital projects.
The government provided $1.336 billion in interest-free loans to the telecommunications lines company between 2012 and 2023, to help finance the fibre broadband rollout.
This year, $170 million dollars was paid back.
Finance Minister Nicola Willis said the loan was not due to be fully repaid until 2036, but having tested the market the government had decided to get the present value of its money back sooner so it can be invested elsewhere.
"The alternative would be to wait another five to 10 years for Chorus to repay the Crown," she said.
The funds will be ring-fenced and redeployed into next year's Budget to help fund other infrastructure.
Infrastructure Minister Chris Bishop said the monestisation process would begin in early 2026, and expected it would be completed in the second quarter, subject to market conditions, investor feedback, and value for money considerations.
Bishop said the government did not have an equity stake in Chorus, and these were not ordinary shares as they did not generate dividend revenue.
"Their early monetisation will not change the ownership of Chorus, nor change the services and assets it provides or owns," he said.
The plan was first signalled in October.
At the time, New Zealand First leader Winston Peters criticised it was a "tawdry repetition of history" and "creative accounting of the worst sort".
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