“A POPULAR BORROWER”

Sun (Auckland), Volume IV, Issue 961, 2 May 1930, Page 9

“A POPULAR BORROWER”

DOMINION LOAN RAISED IN LONDON CREDIT STANDS HIGH LONDON, Wed. The “Daily Telegraph’s” financial correspondent states: A New Zealand loan of £5,500,000 at 5 per cent, in inscribed stock, due in 1949, is being underwritten at £99. Part of this loan is required to meet short-term maturing debt. New Zealand is always a popular borrower on London, and while the depression in the pastoral industry has affected the Exchange, the high standing of New Zealand credit is evidenced by quotations of its outstanding loans. The return, taking into account redemption in 1949, will be approximately £ 5 2s per cent. PURPOSE OF LOAN MONEY FOR PUBLIC WORKS Press Association WELLINGTON, Today. The Prime Minister, Sir Joseph Ward, in a telephone message from Rotorua last evening, stated that the cable to the effect that the New Zealand loan of £5,500,000 at 5 percent., with currency to 1949, was being underwritten at £99 per cent, was correct so far as the terms and purposes of the loan were concerned. He said that he would give further particulars later on after the public subscription lists had closed. Sir Joseph added, however, that the statement that part of the loan was required to meet a short-term maturing debt was misleading. It was true, he remarked, that part of the cash proceeds would probably be temporarily used to pay off Treasury bills issued in London on account of exchange difficulties hindering the remittance of cash from New Zealand, which cash was at present invested here on fixed deposit. The loan, however, he stated was being raised for carrying on the public works programme of the Government and it would be applied to that purpose within the current financial year.