CONVERSION LOAN

Hokitika Guardian, 12 June 1931, Page 6

CONVERSION LOAN

THE CONDITIONS APPROVED (Australian Press Association.) (Received this day at 8 a.m.) MELBOURNE, June 12. The general conditions of the Conversion Loan have been approved by the Loan Council, Holders will be invited to convert their holdings into new stork and upon conversion all existing securities will he subject to a general reduction of 22| per cent in the interest yield, excepting holders of three per cent, 3) and 31, who act)Hired those before August 191.5. The new scout itios are to be restricted to three flat rates of interest, four pm- cent., three and seveiioighths and tliroe per cent and to be spread over ten fixed maturity dates, subject to the Government having the right to redeem after December 1950.

Existing securities amounting to 450 million sterling bearing interest at s;‘, per cent, and over are to be converted into four per cent at a premium. As a general rule each holding is to be spread equally over ten maturity dates.

Conditions are also laid down for dealing ' with existing securities amounting to forty-five millions and sixty-one millions respectively. Interest on the new securities will be exempt from the Commonwealth supertax of 71 per cent but will be subject lo other existing Commonwealth and State taxation. Provision is also made for the conversion of tax free securities on a voluntary basis.