Marac rates raised

Press, 24 August 1976, Page 18

Marac rates raised

PA Auckland .Marac Holdings. Ltd. has raised interest rates for the shorter and longer terms, on secured and unsecured borrowing, hut the managing director (Mr J. D. Rose) said he believed that adequate funds would now be available for the balance of the financial year. Any further adjustment of rates would be mainly related to short-term factors. Mr Rose said.

The new rates show strong increases for terms of 12 months or less and four years or more. Rates for the 18 months and three-year terms have been trimmed The new rates for secured borrowings are:— three; months. $;• per cent (5| per cent previously): six months. 8{ per cent (64 per cent previously): nine months. 9 per cent (6j per cent previously!: 12 months, 9 per cent (7| per cent previously): 18 months. 9 per

cent (9) per cent pre-i , viously): two years. 9 per] cent (9 per cent previously):' three years, 9 per cent (9i| per cent previously) four; years, Il per cent (10 per' cent) and five to 20 years,; ill-i per cent (10 per cent; previously). By comparison, current rates for Broadlands (which will file a new prospectus on September 6) are 6 per cent for three months, 8 per cent for 12 months, 9 per centfor two years, and 10 per;

| cent for three years and; over. I Marac’s rates for unsej cured borrowings for up to; 112 months are f per cent i higher than the secured! ; rates. Mr Rose said that there was a continued strong demand for funds by the commercial sector, particularly to finance exports. As a result, Marac now; required additional funds. Since the March mini-Bud- ; get there had been a period; iof adjustment for interest! rates. In setting the new rates, 1 (notice had been taken of! local body, housing bond,’ and trading bank certificates! of deposit rates. Flexibility was now the: dominant factor, Mr Rose] said.