Callaghan Innovation loan losses mount as MBIE takes tougher line
New Zealand's Callaghan Innovation is taking a stricter approach to recovering loans issued to start-ups during the pandemic, as the agency prepares to wind down. Data shows that 42% of loan recipients have defaulted, with the government now pursuing legal action to recoup funds.
Why it matters
The high default rate raises questions about the efficacy of government-led venture lending and the risks associated with state-backed 'picking winners' strategies.
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The article uses factual data from an OIA request and presents the government's shift in policy as a direct response to financial delinquency.
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