TREASURY BILLS.
REDEMPTION LOAN. Underwritten In London At 5 Per Cent. LISTS OPEN ON MONDAY. (By Telegraph.—Parliamentary Keporter.) WELLINGTON, this day.
Beyond confirming the cabled announcement that the New Zealand loan of £5,000,000 to be issued at £98 10/, and bearing interest at 5 per cent, lias been underwritten in London, the Hon. W. Downic Stewart, Minister of Finance, had no comment to offer on the matter when interviewed this afternoon.
The Minister indicated that particulars as to the purposes and terms of the loan would not be made available for publication until after the public subscription lists, which are to open ia London on Monday, are closed.
It is understood, however, that the proceeds of the loan will be required in tlie main for redemption purposes. Treasury bills outstanding at present amount to £4,000,000, and it is assume' 1 , that an equivalent sum out of the new issue will be applied to the liquidation' of this obligation. This leaves £1,000,000 unappropriated, and the impression here is that half tlita sum is virtually ear-marked for the financing of a rural allotments scheme to lie inaugurated under the unemployment policy of the Rt. Hon. J. G. Coates. If this is the case the balance for general purposes will be £500,000, and there is every probability that this sum will be used for public works purposes.
Those in close touch with the financial affairs of New Zealand express satisfaction that the Dominion has been able again to approach the London money market, particularly as the creation of additional credits there will greatly relieve the exchange burden. It was announced by cable from London on December 17 last that treasury bills amounting to £4,000,000, tenders for which had been cnllcd, had been placed at an average of 6% per cent discount. The biiln were to meet a similar amount of maturing bills. The loan now underwritten will doubtless be largely used for meeting these treasury bills, which mature shortly.
TREASURY BILLS.
Auckland Star, Volume LXIII, Issue 78, 2 April 1932, Page 9
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