Devaluation debt boost of 36 p.c.

Press, 6 November 1984, Page 1

Devaluation debt boost of 36 p.c.

By

MICHAEL HANNAH,

in Wellington

Devaluation pushed New Zealand’s overseas debt up more than $3500 million, or 36 per cent, between July and September, according to Reserve Bank figures.

Acknowledging that the increase in the three months was large, the bank has published figures showing the overseas debt rose from 59875.2 million in June to $13,437.6 million in September. The figures did not include debts owed by Government corporations, which increased $855.6 million, or 29 per cent, to $3782.8 million in September. The

corporations affected are New Zealand Railways, Air New Zealand, the Shipping Corporation, New Zealand Steel Development, Petrocorp, the Development Finance Corporation, New Zealand Synthetic Fuels, and the National Provident Fund. Nor did the figures include short-term liabilities charged to the Reserve Bank, amounting to $400.4

million in September, and $542.5 million in June. “This large increase in the New Zealand dollar value of the overseas debt is a direct result of the devaluation,” the bank said. It also released figures showing that New Zealand’s official overseas reserves fell $7OO million during September, to $1956 million at the end of the month. This was a drop of 26 per cent.