NEW STATE LOAN TO BE RAISED

Press, Volume XCIII, Issue 27928, 27 March 1956, Page 12

NEW STATE LOAN TO BE RAISED

“Fairly Large” Sum Required

CAPITAL WORKS PROGRAMME

(New Zealand Press Association)

WELLINGTON. March 26.

The Government intends to go on the New Zealand market for a cash loan about June. The Minister of Finance (Mr J. T. Watts) announced this tonight. He said he had had a number of inquiries whether the Government would float a new loan. “In view of our capital works programme, I can say that it will be necessary for us to raise a cash l loan this year to help to finance it.” he said. “The amount required will be fairly large, and the terms will be the same as those fixed for the current conversion loan, that is. 4 5-8 per cent for long-term stock and 41 per cent, for short-term stock.

“This flotation will be in line with the usual procedure of seeking the support of the investing public to assist us in maintaining our very necessary programme of public works.” said Mr Watts.

He said he would be prepared to accept advance subscriptions from those persons who already had sums available for investment in the new Government cash loan. Earlier. Mr Watts had announced that applications from stock holders to participate in the conversion loan totalled 11.740 up to the close of business today. This brought the amount converted to £23.048.690. “This is less than half the total conversion aimed at.” said the Minister, who said that the conversion offer would close on Wednesday. Mr Watts also said that he had already reminded the holders of bearer debentures in the 3J per cent, loan and holders of bearer stock certificates in the two 3 per cent, loans that they were entitled to convert at the higher rates of interest.