Credit For N.Z. From Australia

Press, Volume CVI, Issue 31119, 23 July 1966, Page 16

Credit For N.Z. From Australia

(New Zealand Press Association) WELLINGTON, July 22. The Reserve Bank of Australia has agreed to extend a credit to the Reserve Bank of New Zealand of 20 million dollars (£8 million).

The Prime Minister (Mr Holyoake) announced in a statement tonight that he had been advised of this by the Australian Prime Minister, Mr Holt. “This sum will be immediately available and can be drawn either in one sum or to suit our requirements,” said Mr Holyoake. “Drawings under these credits may be made during the current financial year 1966-67, and will help to finance New Zealand payments in Australia. “If by the time this first portion is fully utilised our external imbalance has not been satisfactorily restored, a further SlO million (£4 million) will be available,” the Prime Minister said. “Worsening Situation”

A warning of the worsening trade situation with Austra-

lia was made tonight by the Deputy Opposition Leader, Mr Watt when asked to comment on the loan agreed to by the Reserve Bank of Australia. “It is significant that this loan from Australia will not even meet New Zealand’s trade deficit with Australia for the quarter ending March 1966, which was almost £lO million,” he said. “The National Government made great play of the advantages to be gained from the trade agreement but the situation so far is that the position continues to get worse. “The Prime Minister will doubtless take great comfort from the fact that he has found another source from which he can borrow, and to the extent that it will assist to meet a small part of the deficit he may feel satisfied.”