BORROWING FROM RESERVE BANK

Press, Volume XCIX, Issue 29154, 15 March 1960, Page 23

BORROWING FROM RESERVE BANK

Government Owes £lO2 Million

Government borrowing from the banking system rose to new peaks in January and February. Figures issued by the Reserve Bank show that net Government indebtedness to the Reserve Bank totalled £lo2.lih on February 24. Net Government indebtedness to the trading banks (which has risen only £o.lm in 12 months) was £21.9m in January, and may be assumed to have been unchanged in February. Total indebtedness of the Government to the banking system on February 24 was therefore £ 124.0 m.

The record figure compares with £llB.Bm at the end of January and £ 115.3 m at the end of December. The latest figure shows a rise of £41.8m in 12 months. The increase between December, 1959, and February, 1960, was £B.7m, compared with an increase of only £o.4m in the same two months of 1959.

Provision for repayment of overseas loans accounts for at least £l6m of the increase in borrowing in the last 12 months. Increased Government expenditure (including redemption of maturing internal loans), not entirely offset by higher revenue (including internal loans and small savings) accounts for the remainder of the £42m increase.

Overdrafts Rise.— Advances and discounts by .trading banks in New Zealand rose £3.6m between January /20 and February 17 this year. In the same four Weeks of 1959 the increase was £2.6m. The latest total, of £ 165.3 m, is still £l.3m below the comparable 1959 figure.

Hay’s Interim Report.— ln their first interim report to stockholders, directors of Hay’s Ltd., report that group sales (excluding Brown, Ewiiig) show a satisfactory increase in .the six months ended January 31, 1960, compared with the same period of 1958-59. Ao announced earlier, the company is paying an interim dividend of 5 per cent.