INTERNAL LOAN

Ashburton Guardian, Volume 66, Issue 59, 19 December 1945, Page 3

INTERNAL LOAN

OPTION TO REPAY TO BE CRITICISED CASH OR CONVERSION AT PAR (P.A.) WELLINGTON, Dec. IS. The Government’s proposal for dealing with an internal loan totalling £8,931,900 domiciled ill New Zealand and maturing on April 15, 1949,, but on which the Government has- _ the option to repay on or after April 10, 1946, was described by the Minister of Finance (the Hon. W. Nash) tonight “It is proposed to exercise the option,” said Mr Nash, “but the Government is offering conversion, particulars of which are contained in a prospectus which will be issued early in the New Year.” This week’s would contain formal notice of intention to repay the loan on April 15, 1946, My Nash added, and the offer of conversion would be open for one month from January 15 to February 15, and holders of existing securities were entitled to apply during that period for conversion of their existing securities at par into the new securities being offered—-3 per cent, stock maturing April 15, 1960-63. Holders who did not accept conversion would be paid in cash on April 15 next, Mr Nash said. The conversion offer would -apply to death duty stock in the present loan. No premium was offered on conversion, as the Government considered conversion at par was reasonable, and in. keppmg with present market conditions.