Source of $ll3m loan secret

Press, Volume CXV, Issue 33869, 14 June 1975, Page 1

Source of $ll3m loan secret

(New Zealand Press Association)

WELLINGTON, June 13. New Zealand had raised a mediumterm loan of SNZII3m from a Middle East source, the Minister of Finance (Mr Tizard) said today.

In a statement, Mr Tizard said the loan was negotiated on terms favourable to New Zealand, and had been made to the Reserve Bank. As was common with international banking transac-

tions, further details of the arrangement could not be published.

The loan money would be paid over immediately, and would show as an addition ito overseas reserves.

Commenting on the loan, the Leader of the Opposition (Mr Muldoon) said Mr Tizard I was becoming more desperiate as he became more secretive.

“In announcing his latest massive overseas loan of SI 13m, he has concealed the country which is lending the money, the term of the loan, and the rate of interest. Contrary to what he states, it is not normal to conceal these details. • “Even with the earlier ■Bank for International Settleiments loan to the Reserve 'Bank, which the Prime Min[ister refuses to quote as part 'of our overseas borrowing, I the lender at least was disclosed,” Mr Muldoon said. The public would want to know why the Government was using the Reserve Bank for this borrowing, and whether it was because the amounts did not show in the published statistics of official overseas borrowing.