N.Z. SECURITIES

Hokitika Guardian, 20 December 1933, Page 7

N.Z. SECURITIES

OVERSEAS HOLDING CONVERSIONS.

FINANCE BILL PROVISIONS

WELLINGTON, December 18

Authority for the Minister of Finance to consent to offer ß received from overseas bondholders for the voluntary conversion of their stock to- a lower vato of interest- is provided in the Finance Bill, which was introduced in the House on Saturday night. It is understood that the object ot the clause is to meet applications which have been received from Australia. Any conversion operation is limited to existing securities on which, at March 31, 1933, the place of payment of interest and repayment of principal was he.voiid New Zealand,

The Minister may also agree' to the conversion from March 31 of any existing securities, on any terms regarding interest and the date of maturity or premium as may be mutually agreed on between the holder and himself. Provision is made that in no case shall the rate of interest exceed the apappropriato rate specified in the New Zealand Debt Conversion Act, nor shall the premium be calculated otherwise than in accordance with that Act. All New Zealand Government stock available jjor the payment of death duties and issued in the conversion of existing securities is declared to have been lawfully issued, although the existing securities were not issued with the condition of availability for the payment of death duties attached to them,

The object of wider poyers which are given to the Minister for Finance in. these clauses of the Bill is to enable him to agree to the conversion of securities 'bearing interest at 4 percent or less, and securities domiciled overseas, whore conversion is desired by the holders.