“Credit Cuts Not Hardship Cause”

Press, Volume CVI, Issue 31362, 6 May 1967, Page 1

“Credit Cuts Not Hardship Cause”

(New Zealand Prsss Association) HAMILTON, May S. The new bank credit restrictions should not cause hardship to traders, the Minister of Finance (Mr Muldoon) said in a telephone interview today.

Asked to explain how the new credit restrictions would be Implemented, Mr Muldoon said:

“I don’t propose that it should happen suddenly. Nearly two months remain to July, and it is not overdrafts which are being reduced but overdraft limits.” Mr Muldoon denied that the measure could possibly force some small traders into bankruptcy. “The measure is designed to reduce overdraft limits. There is a difference of about £l5O million between the actual overdraft at £250 million and the present overdraft limits of £420 million.

“It is rather irresponsible for anyone to suggest the 10 per cent cut in the overdraft limits will be so hard on anyone as to cause bankruptcy,” he said.

“The reduction in overdraft limits still leaves a pretty big reserve for those who might have difficulties. In my experience small traders by and large don’t have an overdraft limit except when they want it “This measure is not intend to produce any hardship. I believe there is still sufficient flexibility to enable those who are working to a limit to manage adequately," said Mr Muldoon.