£5,500,000 LOAN.

Press, Volume LXVI, Issue 19917, 2 May 1930, Page 14

£5,500,000 LOAN.

FIVE PER CENT. AT 99.

STATEMENT BY PRIME MINISTER [IKB FBBSB Special Service.] WELLINGTON, May 1. In the course of a telephone conversation from Rotorua to-day, the Prime Minister and Minister for Finance (Sir Joseph Ward) said the Press cablegram to the effect that a New Zealand loan of £5,500,000 at 5 per cent, interest with currency till 1040 is being underwritten in London at £99 per cent, was correct. So far as the terms and purposes of the loan were concerned, Sir Joseph remarked that he would be able to give further particulars \ later on after the public subscription list had closed. Ho added, however, that the further statement that part of the loan was required to meet a short-term maturing debt was misleading. "It is true," he said, "that part of the cash proceeds will probably be temporarily used to pay off Treasury bills issued in London on account of exchange difficulties hindering the remission of caßh from New Zealand, which cash is at present invested here # On fixed deposit. The loan is being raised for carrying on the public works programme of the Government, and it will be applied to that purpose within the current financial year.'' "(uHiTin pßbss AssociiMojr—»* elictWO teusohaph—copraioßT.) LONDON, April 30. The "Daily Telegraph's" financial correspondent states that £5,500,000 New Zealand five per cent, inscribed stock, maturing 1049, is being underwritten at £99. Part is required to meet a short-term maturing debt. New Zealand is always a popular borrower on the London market. While depression in the pastoral industry has affected the exchange the high standing of New Zealand credit is evidenced by the quotations of its outstanding loans.