LOAN CONVERSION.

Auckland Star, Volume LX, Issue 221, 18 September 1929, Page 10

LOAN CONVERSION.

NEW ZEALAND'S SUCCESS. EXPLANATION BY PREMIER. DOMINION'S CREDIT BUTTRESSED. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. A full explanation of the successful conversion operations respecting New Zealand's maturing loans, totalling 29 million?, was made to the House of Representatives by Sir Joseph Ward.

The conversions effected up to January left remaining a balance of £9,731,356, said Sir Joseph, and last week's operations have the result that, including figurps relating to the conversion offer now being made, the annual interest cost to the State on the total stock issued in conversion or. redemption works out at an average of less than 5 per cent. In regard to'the balance of approximately £4,700,000 remaining, it is pro-. posed to pay' off the holders in cash at maturity. Funds for the purpose will be made available in London, firstly by the amount of £700,000 provided for redemption under the Repayment of Public Debt Act, and secondly by utilising cash already temporarily invested in London, which will, as required, be replaced out of funds from local sources.

The effect of this policy will be to bring the domicile of a fairly large parcel of debt affected, approximately £0,000,000, from London' (o New Zealand.

.Sir Joseph Ward "added that by the time the whole of the 4 per cent 1929 stock had been dealt with it is calculated the yerfrly interest costs will be increased by about £220,000. The methods adopted for the completion of these conversions arc regarded by the Government's London " advisers as strengthening the Dominion's credit in London, and have considerably assisted them in their operations in a market that is very difficult for borrowers.