WAR DEBTS

Evening Post, Volume CXIV, Issue 124, 22 November 1932, Page 8

WAR DEBTS

PAYMENT OF INTEBEST

BONDHOLDERS' POSITION

In the House of Representatives this afternoon, Captain H. M. Kushworth (Country Party, Bay of Islands) asked the Prime Minister^whether Great Britain had agreed to the postponement of the payment of interest on war debts for a further year, whether it was correct that the sum, involved amounted to -£850,000, and if the. report was correct how would the bondholder be affected.

In reply, Mr. Forbes stated:—"The hon. member's attention is drawn, to the announcement made in the Budget, page 11, as follows:-—'Following the Hon. Mr. Downie Stewart's personal representations in. London in regard to our difficulties, Great Britain has again extended a helping hand by consenting to postpone for another year all payments due on our funded war debt, and certain other debts due to the British Government. The additional relief to this year's Budget is £825,000, in addition to which "a saving of £47,000 will accrue to the State Advances Office.':

■ "The funded debt is an arrangement made between the Imperial Government and the New Zealand Government in respect of moneys raised by the Imperial Government during the war period, and lent to the New Zealand Government. It relates to no particular holders of Imperial Government securities, and therefore the lenders are not affected as their interest will continue to he paid by the Imperial Government." .