NEW ZEALAND LOAN

Dominion, Volume 23, Issue 8, 4 October 1929, Page 7

NEW ZEALAND LOAN

RESULT OF CONVERSION OPERATIONS

“SATISFACTORY UNDER THE CIRCUMSTANCES”

FAVOURABLE PRESS COMMENT

Australian Press Association.

London, October 2.

Official applications for the 4 per cent, conversion loan of £9,700,000 for the New Zealand Government, totalled approximately £3,500,000.

FAVOURABLE IMPRESSION

SATISFACTORY RESPONSE UNDER CIRCUMSTANCES.

(“Times” Cables.)

(Rec. October 3, 8.30 p.m.)'

London, October 3.

“The Times,” discussing the New Zealand loan, says the result falls short of expectations, yet it is by no means unsatisfactory in view of the recent unfavourable conditions, in the absence of which the whole of the amount would probably have been converted, as New Zealand’s steps to repay £4,703,000 out of £9,703,000 4 per cent, stock maturing on November 1 has created a favourable impression. The “Morning Post’s” financial correspondent says that despite the most unfavourable conditions of the market while the lists were open, New Zealand’s conversion loan offer met with a very satisfactory response in the circumstances.

STATEMENT BY PRIME MINISTER

Satisfaction with the result of New Zealand’s recent conversion offer of £5,000,000 of consolidated stock, maturing on November 1, was expressed by the Prime Minister (Rt. Hon. Sir Joseph Ward) yesterday, when referring to the Press Association cable on the subject published in the morning. “My advices indicate that the underwriters will be left with about 30 per cent.,” said the Prime Minister. “In view of all the circumstances and the increase in the Bank of England discount mte to 6 J per cent, during the offer, the result is satisfactory. The whole transaction of converting the £29,000,000 is now practically effected, as arrangements to deal with the outstanding £4,700,000 on November 1 have been completed. One important feature of the transaction has been the ability of this country to redeem a substantial amount from local issues during the past twelve months.”