RESTRICTION BY BANKS

Press, Volume CI, Issue 29744, 10 February 1962, Page 18

RESTRICTION BY BANKS

Minister Gives Explanation

‘The Press" Special Service HAMILTON, February 7. Misunderstandings had arisen about the Reserve Bank’s statement that extra trading bank credit would not be provided this year to meet income tax payments, the Minister of Finance (Mr Lake) said in Hamilton. Mr Lake said the Government agreed with the Reserve Bank ruling. But he wanted to make it clear that any trader was entitled to use his bank credit for the payment of his tax. provided he did not exceed the limit that the bank had applied for him for some years

He expected that there would be some rise in bank advances when the tax payments were made, but he was not prepared to disclose what would be a reasonable top figure However, the Reserve Bank was definite tn its policy of seeking to avoid the £4O million increase that took place last year.

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