FINANCIAL

Hokitika Guardian, 30 September 1932, Page 5

FINANCIAL

LOAN CONVERSION. N.S.W. PROSPECTS. (Australian Press Association.) SYDNEY, Sept. 29. The Prime Minister, Mr J. A. Lyons, has had a radio conversation with Mr S. Bruce, in London, concerning the terms of the proposed London conversion of a New 3°oth Wales loan of £12,360,958, which at present carries interest at the rate of o% per cent., and which falls due oil November Ist. Mr Bruce stated , that the prospects 'were good for a conversion at a lower rate than 4,1 per cent, at 97. Mr Lyons hopes to be able to announce the actual terms next week. LONDON LENDERS’ VIEWS. WANT 4i PER CENT. AT LEAST. LONDON, Sept. W. The “Morning Post”- says: "The upward tendency of Australian stocas has heightened interest in the forthcoming New South 'Stales .loan converscion. The market inclines to the opinion that it should bo a Commonwealth operation, but, whatever form is adopted, Australiawill have the investors’ good will. The "Daily Telegraph” says:"There jire apparently conflicting views in regard to the appropriate terms for the Now South Wales loan conversion. New South Wales, as a borrower, cannot postpone her appearance ill tjie market indefinitely. It will also oeyiisinu some surprise if the market is - Wierved for New South Wales and our own Treasury financing is deferred.” The "Financial News” says on the same subject: ’"London is evidently not prepared for anything lower than a 4i per cent, conversion, and prefers rather a higher rate, while Australia considers any yield over four per cent, would be a slight t oher sacrifices, j Allowing for the improvement in Australia, and for the fall in the interest rates here, London has advanced4Australian credit to a level of about 41 per cent., which, even a few' months ago, would have seemed fantastic. New York is more cautious still, and regards Australia as a. six per cent, risk or higher.” The "Daily Express” understand* that the discussions for the conversion art* proceeding on the basis ot four per cent, at 97, for a fifteen years loan. It says it is believed that a short term issue of this nature will | meet with approval in the city, especially as there is a definite scarcity of such stocks at present.