TERM LOANS BY BANKS

Press, Volume CII, Issue 30127, 10 May 1963, Page 17

TERM LOANS BY BANKS

Demand For New Scheme

The term loan and export finance schemes announced earlier in the year have now been operating two months. ’There has been a brisk demand for accommo-

dation, one bank being already fully committed,” says the research directorate of the New Zealand Bankers’ Association.

“The actual amounts uplifted so far are, however, small in total because of the inevitable delay between the arrangement of loans for capital purposes and their utilisation.”

Bank advances (including term loans and export finance) totalled £2o4m on April 24, £9 million less than at the end of April last year; seasonally adjusted, they showed no change from the March, 1963, figure.

“This situation is satisfactory in view of the stronger tempo of the economy this year, as reflected in cheque clearings.” the directorate says. “Whereas , advances have fallen 4.5 per cent, on 1962, cheque clearings for the four weeks to April 24 were 26 per cent, up on the corresponding period last year.” Total credit limits, seasonally corrected, rose £3 million in April. “Nevertheless total credit limits (advances plus unexeroised overdrafts) are only 1J per cent, higher than last year in spite of a rise in national income and expenditure of 4 per cent, to 5 per cent.”

Marlborough Lucerne.—lnterim dividend of 3 per cent, is payable on May 31, ex May 29. Total payment last year was 6 per cent.