CONVERTING CITY LOAN

Press, Volume LXXVII, Issue 23264, 26 February 1941, Page 11

CONVERTING CITY LOAN

.♦ : . PLAN SUBJECT TO APPROVAL OF LOANS BOARD The proposal involving the refinancing of the Christchurch City Council conversion loan, at a lower rate of interest, has now been confirmed. The decision will save the council £28,000. in interest on its debentures, and will mean the conversion of £600,000 of the city’s present conversion loan of £688,595. The proposal Is .subject to the approval of the Local Government Loans Board. The chairman of the finance committee of the council, Mr G. Manning, said yesterday that the two institutions which had made the original offers to the City Council had now confirmed them following the council’s acceptance of the proposals. The Bank of New Zealand had offered £200,000 at £3 12s 6d per cent., and the A.M.P. Society £400,000 at £3 I4s per cent. Councillor Manning said that the reduced Interest rate —4J per cent, was being paid on the conversipn loan at present—would mean a saving to the city of £28,000 over a period of 14 years. He added that the necessary application ’to the Loans Board had already gone forward from the City Council. . . ~ The redemption payments for the £600,000 were similar to those fixed for the conversion scheme of 1935, so that there would be no difference in the period of paying off the loan. Negotiations for the deal were carried out by Mr J. S. Satterthwaite.