BORROWING ATTACKED
Social Credit Statement (N.Z. Press Association) WELLINGTON, July 22. The Social Credit League today attacked the Government for “its blatant admission it would borrow to the limit of the market.” The league’s leader, Mr A. F. Cracknell, said the recent announcement by the Minister of Finance (Mr Lake), together with the previously announced budget deficits for the coming year, would mean that New Zealanders would be living to an increasing extent on their grandchildren's money.
“It is misleading too, for Mr Lake to claim he will be borrowing overseas at low rates of interest through the I.M.F. or World Bank,” said Mr Cracknell. “I.M.F. drawings have a maximum of three to fiveyear terms and then what is virtually a penal rate of 5 to 6 per cent interest is charged. Long-term World Bank finance is available about 5| per cent, depending on the rate the bank can borrow on world markets. “Also our borrowing In America or London will be at much heavier rates than we were paying on the loans we are converting into more debt. The current New York loan of £7 million will be at nearly 6 per cent.”
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Bibliographic details
Press, Volume CIV, Issue 30810, 23 July 1965, Page 3
Word Count
194BORROWING ATTACKED Press, Volume CIV, Issue 30810, 23 July 1965, Page 3
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