Cash Loan To Open Feb. 14

Press, Volume CV, Issue 30983, 12 February 1966, Page 1

Cash Loan To Open Feb. 14

(Neto Zealand Press Association)

WELLINGTON, February 11.

To maintain New Zealand’s high rate of economic development, a third and final internal Government cash loan for the financial year 1965-66 will open on February 14.

Announcing this today, the Minister of Finance (Mr Lake) said a target figure had not been fixed because good use could be made of all subscriptions. He said previous Government loans this financial year had all been oversubscribed.

Urging all institutional and private investors to support the loan, Mr Lake said: “If a high rate of economic development is to be maintained it is essential that most of the large sums of money needed for capital works of national importance be provided within New Zealand.” The Minister said the Government’s policy was to encourage the voluntary transfer to the Government of money needed for national development. Mr Lake said: “The options are a slower rate of

development, or the maintenance of the capital works programme by heavy additional taxation and resort to inflationary borrowing from the Reserve Bank.

“I cannot emphasise too frequently that in the view of the present Government neither of these alternatives is desirable,” he said. The Minister said loan investors were offered a choice of three types of stock, and announced the following terms: Interest

Rate Repaj-able Issue Price 4* p.c. Dec. 15, 1968 Par 4} p.c. Dec. 15, 1971 Par 5 p.m. Dec. 15, 1985 £99 per 100 of stock

He said applications could be paid in full at the time of application or by payment of £lO per cent on application and the balance before Thursday, March 31, this year. Interest will be repayable in New Zealand on June 15 or December 15. The loan closes on March 4 this year.