U.K. banker says $NZ not overvalued

Press, 27 April 1984, Page 8

U.K. banker says $NZ not overvalued

PA Wellington The New Zealand dollar is not overvalued in relation to major currencies, according to Mr Harry Taylor, the president of the Londonbased banker, Manufacturers’ Hanover Corporation. Mr Taylor told a press conference in Wellington yesterday that he thought the New Zealand dollar was well placed against the currencies of the nation’s major trading partners. Mr Taylor said that New Zealand’s lower rating in the credit index of Standard and Poors, of New York, had not reduced the country’s ability to raise money on international loan markets. “Double-A is still a good rating and does not effect your ability to raise money, but it does have a marginal effect on what rate you can get it for,” he said. “The big thing is integrity, and on the bond market New Zealand is still

rated a prime credit.” Mr Taylor said that his bank felt comfortable that New Zealand’s overseas loans were being used wisely. The economy was being oriented away from the agricultural sector, and growth always involved debt. New Zealand’s most attractive projects for overseas investors were those which had an element of import substitution, and which would be competitive with similar industries abroad, he said. Mr Taylor, accompanied by Mr Tony Constance, the managing director of Manufacturers’ Hanover, Ltd, is in New Zealand for talks with local bankers and industrialists. He said that his company was interested in further advisory and investment projects, particularly those associated with major projects such as the petrochemical industry and coal mining.