Lower interest rates

Press, 30 July 1980, Page 13

Lower interest rates

I Five more finance com-’ ' panies ,have joined the movement towards lower interest rates, but ore of these has kept the rate for terms of three years or more' unchanged, and another has actually increased the rates for four and fiveyear terms. B.N.Z Finance Company.. Ltd, adjusted its prospectus, rates yesterday to lower rates for all terms of less than three years. The new rates, with the old ones shown in brackets are: —at call after 3 months. 12.0 (12.0 i 6 months, 12.5

(13.0): 1 year. 14.0 (14.5); IS months. 14.5 (14.5): 2 years. 15.0 (15.25): 3 years. 14.5 (14.5); 4 years. 14.5 (14.0); 5 years. 14.5 (14.0). As from July B.N.Z. Finance qualified for trustee status under the criteria of the Trustee Amendment Act 1974.

A. A. Finance, Ltd, is continuing to offer a maximumrate of 15.5 per cent per annum for three to five year ■investments in its latest

’prospectus, released yesterday. The company is seeking 52.250,000 of registered secured debenture stock and SIOO.OOO unsecured deposits with the right to accept' oversubscriptions within the ratios allowed by its Trust. Deed up to a further 52.250.000. Details of interest rates offered are as follows: — 3. 4 and 5 years. 15.5: 2 years, 15.0: 18 months. 14.75: 12 months, 14.5; 6 months, 13.0; 3 months. 12.0; Call. 10.0. Unsecured Deposits:— . 3 years. 15.5: 2 years, 15.5: IS months, 15.25; 12 months, .15.0.

Finance and Discounts,; Ltd. has amended the inter-; est rates for its debenture stock prospectus No. 15. to 14.75 per cent for two years; (15.25) and 15 per cent for; three years (15.25) up to' five years (15.5). Lombard New Zealand. Ltd. has maintained the existing rate for four and five-year terms at 15 per cent, but has dropped its three-vear rate from what' was the industry’s top rate

■of 16 per cent to 15.5 per .cent. The two-year rate is now 15 per cent instead of 15.75 per cent and the oneyear rate is 14.5 per cent as against 14.75 per cent. The ; six-months rate remains at 11 per cent and the three- ; months rate drops from 11 to 10 per cent. “In view of the continuing high inflation. 1 do not see any marked fall in interest rates taking place in the immediate future and consequently we are .not making major changes to our rates but rather adjusting them tosuit our requirements in the; medium term field,” said Mr Fitzgerald. Lombard's gen-

era! manager. N.Z.L Finance. Ltd, the finance subsidiary of New Zealand Insurance Company. ; Ltd. has also lowered some ■of its rates. The new rates, with the old ones in parenthesis, are.—Call, 10.0 (10.0); 1 month. 10.5 (11.0): 3 months, 11.5 (12.0); 6 months, 12.0 (13.0); 1 year,: 13.5 (14.5): 2 years, 14.75. (15.5); 3 years, 14.5 (15.0); 4 and 5 years, 13.75 (14.0). [