INTEREST RELIEF.

Auckland Star, Volume LXVII, Issue 285, 1 December 1936, Page 15

INTEREST RELIEF.

EARTHQUAKE LOSS LOANS. INDIVIDUALS AND COMPANIES. (Br Tolcgrapli.—Press Associntion.) HASTINGS, Monday. Loans made by the Government to individuals and companies who suffered losses in the earthquake of 1&31 are to be free of interest .for the remainder of the unexpired term. An announcement to this effect was made by the Hon. W. E. Barnard, M.P., to-night, to a meeting' of borrowers.

The action of the Government is the culmination of representations made by Mr. Barnard and the Borrowers' Association for several years and the announcement was received with genuine enthusiasm. A resolution was adopted! expressing appreciation of the Government's action and of the work done by Mr. Barnard and other Hawke's Bar members of Parliament.

The decision of the Government was conveyed by the following letter to Mr. Barnard from the Minister of Finance:—"l am pleased to advise you that loans made to individuals under the provisions of the ■ Hawke's Bay Earthquake Act, 1931, shall be free of interest for the' remainder of the unexpired term of such loans. Repayment of principal will, fyowever. continue 011 the existing basis until September 1, 1938', when the balance of the loan then outstanding should be repaid by equal quarterly or half-yearly instalments within the existing terms of the advance. Past transactions will not be reopened and any . interest accrued to August 31, 1935' ' and still unpaid remains due. leaving any case of hardship to be dealt, with on its merits by the Minister of Finance. The right is reserved to charge interest on overdue instalments if necessary.

"All existing .unused loan authorities which are not in proccss of being taken up or have not been specially kept open for a defined period shall be cancelled in the meantime and finch authorities can be taken up only after further investigation and subject to the special approval of the Minister of Finance."