FUTURE INTEREST REMITTED

Press, Volume LXXII, Issue 21954, 1 December 1936, Page 12

FUTURE INTEREST REMITTED

LOANS TO SUFFERERS IN EARTHQUAKE APPRECIATION OF HAWKE’S BAY BORROWERS (PRESS ASSOCIATION TELEGRAM.) HASTINGS, November 30. Loans made by the Government to individuals and companies who suffered losses in the earthquake of 1931 are to be free of interest for the rest of the unexpired term. This announcement was made by the Hon. W. E Barnard, M.P.. to-night to a meeting of borrowers. The action by the Government is the result 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 Messrs E. L. Cullen and H. M. Christie, other Hawke’s Bay members. The decision of the Government was conveyed by the following letter to Mr Barnard from the Hon, W. Nash (Minister for Finance): “I am pleased to advise you that the 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 ternwif such loans. The repayment of principal will, however, continue on the existing basis until September 1, 1838, when the balance of the loan then outstanding should be repaid by equal quarterly or half-yearly instalments within the existing term of the advance. Past transactions will not be reopened, and any interest accrued to August 31, 1935, and still unpaid will remain due, leaving any case of hardship to be dealt with on its merits by the Minister for Finance. The right is reserved to charge interest on overdue instalments if necessary. “All existing unused loan authorities which are not in process of being taken up or have not been specially kept open for a defined period shall be cancelled in the meantime, and such authorities can be taken up only after further investigation, and subject to tiic special approval of the Minister for Finance.”