FALLS IN STERLING

Taranaki Daily News, 24 September 1940, Page 8

FALLS IN STERLING

By Telegraph—Press Association.

EARLY PAYMENT OF LOANS

Christchurch, Last Night. Recent heavy falls in sterling holdings of the Reserve Bank of New Zealand have been due to the Government's decision to make early payment of loans falling due. Two sums amounting to £1,000,000 each not due until the end of the year, have been paid well in advance with a consequent considerable saving to the State. Details of these transactions were given by the Minister of Finance, the Hon. W. Nash, in an interview when he was asked for the reason for the sudden fall in exchange holdings. The fall for the week ended Monday, September 9, was £1,427,013. The fall for the previous week was £1,033,374. The latest report of the bank recorded a rise of £460,756. "We had two loans falling due at the end of the year which were redeemable at due date or earlier, the Minister said. Actually due date was in December, but our funds were such that we were able to redeem at»an earlier date and so save the interest for the intervening period. The two different sums were for £1,000,000 each, and we were pleased to be able to pay them well before due date. The Minister explained that the earlier repayments would not afTect the year's exchange operations, as they would have had to be met sooner or later and would not affect the issue of the fifth period import licenses. Another fall would be experienced next month when a local body loan for a considerable sum will fall due at London and will be repaid. The Minister could not give details ^of the interest saving involved in the earlier repayment of the two loans. but it is estimated to approach £25,000.