FURTHER RELIEF.

Auckland Star, Volume LXVI, Issue 214, 10 September 1935, Page 13

FURTHER RELIEF.

HAWKE'S BAY LOANS. REDUCTION IN PAYMENTS. PERIOD OF THREE YEARS. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. The Minister of Finance, Mr. Coates, has supplied further information regarding tiie amended decision of the Government to grant relief to persons and firms in Hawke's Bay who received assistance for rehabilitation. The Government's decision, as announced a few days ago, was to the effect that all these loans were to be free of interest for a period of three years from September 1, 1935, but that existing payments were to be maintained and to° be credited wholly to principal reduction. Further representations have been made to the Government indicating that what is more urgently required is reduction in the amount actually payable during the present and two succeeding years. In this connection it was pointed out that in approximately 100 cases the loans were already free of interest, so that unless reduction was granted in the total payments these persons would receive no'relief whatsoever. It has now been decided to reduce all payments during the free-of-interest period which has been granted to one quarter of the present payments during the first of such years and to one half of the present payments during the second and third years, all such payments to be applied in the reduction of principal. A circular was issued ny the Treasury on September 4, but that circular is now cancelled and a further one embodying the new terms will be issued immediately. It is hoped that the amended concession will enable earthquake sufferefs to meet the existing difficult conditions and strengthen their financial position.