Contentious loan retired

Press, 11 July 1988, Page 5

Contentious loan retired

Political reporter A foreign loan worth $670 million taken out in the last days of the former National Government would be repaid today — four years ahead of schedule — said the Deputy Prime Minister, Mr Palmer, yesterday. The eight-year loan was taken out eight days before National lost power in 1984. Mr Palmer said that the Yen 100 billion borrowing at 7.9 per cent was one of the biggest and most expensive by a New Zealand Government.

“That loan was a deliberate millstone cast round the neck of the economy by a Government which was des-

perately trying to hold on to power.” At the time, the now Prime Minister, Mr Lange, was prompted to say that National was determined to destroy the prospects of economic recovery in three years by a reckless, mad-dog approach. Mr Palmer said yesterday that it had taken years of hard work for New Zealand to be in a position where the loan could be repaid.

“It has meant hard work and considerable pain for many New Zealanders. But now we have tangible evidence that the restructuring is working, that the debt level is going down and that the economy is responding,” Mr Palmer said.