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Govt halts on cash loans

PA Wellington The Government does not propose to raise another cash loan soon. The Deputy Minister of Finance (Mr Templeton) said yesterday that the two savings stock issues and two cash loans announced since August last year had caused a “substantial” flow of funds to the Government and a heavy administrative workload for the Reserve Bank. “Accordingly, it has been decided not to hold an internal cash loan in the present quarter,” Mr Templeton said. The Government announced its intention to hold quarterly cash loans last year as part of a more marketoriented approach to public debt activities. In line with this policy a new loan would have been held within the next month.

Mr Templeton said that it had not been decided when another cash loan would be held. The Government raised S7BIM through the savings stock issues and cash loans, he said. Savings stock issue (No. 1) raised S2O3M and the bank ■handled 73.730 applications for it. Savings stock issue (No. 2) raised S47M (20,000 applications). Cash Loan (Nd. 1) raised $16.4M (1450 applications), and Cash Loan (No. 2) 5424 M (18,000 applications). Mr Templeton said that new Treasury bills were still available “on tap” from the Reserve Bank for financial institutions with investment obligations. Government stock could also be purchased through the specialised dealers recognised by the bank, he said.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19790802.2.23

Bibliographic details

Press, 2 August 1979, Page 2

Word Count
228

Govt halts on cash loans Press, 2 August 1979, Page 2

Govt halts on cash loans Press, 2 August 1979, Page 2