BOROUGH LOAN CONVERSION.
From what we can gather there appears to be a good deal of misunderstanding regarding a recent vote of the Greymouth Borough Council for the conversion of the existing overdraft, some ratepayers imagining that the Council has gone in for another loan. Such, however, is not the case. The Act of last session permits municipalities prior to April next to convert the amount of their existing bank overdraft into 3h% debentures. And this is what the Council intend doing. The overdraft which now stands at £B,BOO and on which 6% interest is being paid or, say, £228 per annum, will be taken up by Government at per cent, or £l3B per annum. This means a direct saving of £BS per annum and the extinguishment of the debt at the end of the term. This is surely a most advantageous arrangement, which the Council would have been deserving of censure had it neglected. It should bo distinctly understood that there is no fresh loan; only a transfer of existing loan at a much reduced rate of interest and under a more advantageous system.
Permanent link to this item
Hononga pūmau ki tēnei tūemi
https://paperspast.natlib.govt.nz/newspapers/GEST19010122.2.9
Bibliographic details
Ngā taipitopito pukapuka
Greymouth Evening Star, Volume XXXI, 22 January 1901, Page 2
Word count
Tapeke kupu
185BOROUGH LOAN CONVERSION. Greymouth Evening Star, Volume XXXI, 22 January 1901, Page 2
Using this item
Te whakamahi i tēnei tūemi
No known copyright (New Zealand)
To the best of the National Library of New Zealand’s knowledge, under New Zealand law, there is no copyright in this item in New Zealand.
You can copy this item, share it, and post it on a blog or website. It can be modified, remixed and built upon. It can be used commercially. If reproducing this item, it is helpful to include the source.
For further information please refer to the Copyright guide.
Log in