Interest rates increase

Press, 22 August 1978, Page 19

Interest rates increase

The net profit of Chal-i Tenge Finance, Ltd, rose 56.4 [ per cent to $835,483 in the year to June 30, the chairman (Mr R. R. Trotter) announced yesterday. Challenge Finance is the strongly performing finance company subsidiary of Challenge Corporation. Public borrowings rose) 59.0 per cent to more than) S4OM, and total assets increased 57.6 per cent to almost SSOM.

“Although Challenge Finance is planning further , growth in the current year, its rate of expansion will be lower than in recent years,” Mr Trotter said. The company is issuing a new prospectus on September 4 — incorporating higher interest rates. [ While the company made [no comment about this, it (appears that the upward re- [ vision follows the likely [tightening of liquidity, and (problems that the company

possibly found in raising money with its present prospectus, which offered rates of only 10 per cent for oneyear and two-year stock. The new interest rates, previous rates in brackets, are:—Secured debenture: three to five years 12 per cent (11); two years 11.5 (10); one year 11 (10); six months 8 (7); three months 7 (6). Unsecured: one to two years 12 per cent; six months 10; three months 9; call 7 (all unchanged).