STATE ADVANCES

Waikato Times, Volume 119, Issue 19899, 30 May 1936, Page 4

STATE ADVANCES

l CONTINGENT LIABILITY. I MAY BE MET BV RESERVES. I (By Telegraph—Press Association) ' \VELLINGTON, Friday. The possibility of a reduction in the contingent loss on advances to settlers under the State Advances Department was discussed by the Minister of Fin—lance. the Hon. \V. Nash, who stated ithat as a result of reserves held by Ithe department the loss might be com—'paratlvely small. l .. When the securities of the State ,Advances Department were taken over thy the Mortgage Corporation.” Mr Nash l'said, “there was left in contingent inability a sum of approximately £8,900,000. Of that about £7.000,000 was on ac‘count of principal and the balance was on account of overdue in—terest. A large proportion of the con—tingent liability on account of principal was associated with what are ‘known as the 95 per cent. loans. It is loot anticipated that anything like the sum in the contingent liability account will be lost. l “Taking into consideration some—thing over £3,000,000 held in the reserves account of the State Advances Department it is quite possible that the loss will be comparatively small and there is an outside possibility that reserves \Vl‘lii'h have been pl‘OVidEd over the years will be sufficient to meet the whole of the loss.“