N.Z. CONVERSION LOAN

Press, Volume LXXXIV, Issue 25549, 17 July 1948, Page 7

N.Z. CONVERSION LOAN

LONDON COMMENT ON RESULT (Special Correspondent N.Z.P.A.) (Rec. 8.30 p.rq.) LONDON, July 16. Although 53 per cent, of the £16,000,000 New Zealand conversion Joan has been taken up by the Reserve Bank of New Zealand, it does not mean that the Dominion’s credit in London is viewed doubtfully. Financial circles say that the Berlin crisis caused the London market to sag. resulting in all stocks falling from a premium to a slight discount. Market dealings have been restricted, and investors are waiting the outcome of events. New Zealand, it is stated, had bad luck in offering the loan at this time. A month before, an Australian issue I was offered on the same terms, and I the dealing went to a slight premium, ' which held until almost before the flotation of the New Zealand loan. The Reserve Bank of New Zealand. | if it desires, will have the opportunity of unloading its holding without loss when conditions improve, and there is a prospect that it may even make a • small profit. There is a pent-up demand for such securities as the New Zealand loan, and it is thought that • when the market returns to normal. ' there will be a heavy demand, and prices will recover.