N.Z. LOAN CONVERSION

Hokitika Guardian, 16 September 1929, Page 6

N.Z. LOAN CONVERSION

FAVOURABLE TERMS

.United Prose Association—By Electric Teleg. Copyright).

LONDON, September 14

Financial circles consider that New Zealand s terms are very favourable to the holders of the maturing stock, who probably will jump at the chance of obtaining the five per cent interest offered, instead of four per cent., and also at cash payment of two pounds per cent.

' The “Evening Standard” congratulates New Zealand on its finding a way out of tthe difficulties arising out of the present monetary situation, by the offer for a conversion into 1935-45 stock. New Zealand it says, lias -..ereby the option of repaying the lenders in six years if the conditions should so far improve as to make this desirable, and the Dominion also avoids involving itself in a long term loan at a higher rate than New Zealand’s credit in the ordinary way would warrant.

Tbe ‘•‘Morning 'Post” sayfc:—“lJt came as a welcome surprise to the market that the total outstanding was under ten millions. It was felt that from every viewpoint, New Zealand hak followed a wise policy,' and one that is likely to ensure a favourable response from the holders of the maturing stock. It would have been most difficult to place a large cash loan at present. Indeed, New Zealand would have suffered as regards her credit—not from any deterioration of her own financial position, hut as the result of the exigcncies-'of the general monetary situation. The effect, also, might easily have been unfavourable to Colonial and indeed to all gilt-edged securities/