LOANS TO BE CONVERTED

Hawera Star, Volume LIII, 17 June 1933, Page 4

LOANS TO BE CONVERTED

SOUTH TARANAKI POWER. BOARD SUM OF £195,000 INVOLVED, A decision to proceed to convert tho whole of its loans under the provisions of thfe Local Authorities Interest Reduction and Loan Conversion Act was made last evening by the South Taranaki Power Board. The amount involved is £195,000. At present the board has six separate loans. The conversian scheme will .involve the grouping of these loans into three new loans which, it is hoped will bo arranged on the instalment repayment system, thus eliminating the necessity of sinking funds. It is not proposed to extend the maturity dates of the loams to any material extent, and no terms will be extended for a greater period than two years. T'lie fact of converting the loans will not give the board a greater benefit than jt is receiving at the present time, but will ensure that the rate of interest will be fixed for the duration of the new loans.- . . It was decided to adopt a. basic interest rate of 4i per cent, on the new loans, and to issue, premium debentures n those cases where such a course of vetion involves a greater interest reduction than 20 per cent, on the present nominal rates. The board decided to make its ap’’’cation to the Government LoamBoard for permission to proceed with he scheme and to request that the Loans Board arrange the necessary Ordor-in-Counoil. setting out the terms of the conversion.