D.F.C. spreads loans

Press, 15 September 1976, Page 28

D.F.C. spreads loans

PA Wellington The Development Finance Corporation approved 358 loans in the last financial year, compared with 336 the year before, according to the corporation’s annual report, tabled in Parliament. The over-all value of the loans, 551.7 M, was S9.IM down on the year before—reflecting the greater number of smaller projects. At June 30, 1976. the corporation had loan investments and guarantees in 731 enterprises, compared with 395 the previous year. Term loans of five to 15 years were still the mam form of D.F.C. lending to industry. Plant and machmerv finance for similar terms was not readily available from other institutions.' A further 81 export sus-i pensory loans, totalling S3M, were approved by the board, and a total of 197 companies have nnw received export suspensory loans since the scheme was introduced in June, 1973. Approximately one third of the companies had no prior export history before receiving the suspensory loans. Eighty-two regional development suspensory loans were approved, with SI.9M going to regional development areas and $700,000 to special projects outside these designated areas. The funding pattern of the I corporation has changed dur-' ing the last two years, with )e<s reliance on the Government as a source of funds. During the 1975-76 year the Government invested S9M byi way of loans and new capital, compared with -SI2M ini 1974-75 and S2om in 1973-74.

i The principal source of > funds was overseas borrowj ing, together with an inI creasing amount of public » borrowing within New Zea- > land.