New Zealand's government said yesterday it will lower the fees that apply under its Wholesale Funding Guarantee Scheme, not that any financial institution has sold debt yet under the scheme.Under pricing announced in November 2008, banks rated AA- and above were to pay a fee of 85 basis points on paper of up to one year and a fee of 140 basis points on paper of between one and five years.For an A rated bank the fees were 145 and 200 bps. For a BBB rated bank the fees are 195 and 250 bps.In a media release yesterday the New Zealand Treasury said the fee for terms of one year and less has dropped by 15 basis points, and those for terms of more than one year by 50 basis points. "The cost (the margin above comparable government issued debt) of raising term funds by banks in other countries, operating under their guarantees, had proved much higher than anyone had expected. It is appropriate to reduce the guarantee fee, and for the cut to be focused on the terms beyond one year," Mr Whitehead said.