RURAL FINANCE

Dominion, Volume 26, Issue 171, 15 April 1933, Page 10

RURAL FINANCE

Intermediate Credit LOWER INTEREST RATE .. f .. ; .... Reduction from May 1 STATEMENT BY MR. FORBES As from May ,1 next there will be a reduction in the rates of interest charged on loans made by 'the Rural Intermediate Credit Board, and by co-operative rural intermediate credit associations. This announcement was made ■on Thursday evening by the Prime Minister, -Rt: Hon. G. W. Forbes. The reduction will apply to loans already in existence's well as to loans granted after the beginning of next mouth. Mr. Forbes said the reduction had been decided upon, in response to the Government’s expressed desire for a general reduction of interest rates with a view to assisting mortgagors in general and farmers in particular. He was particularly pleased to be, able to report that the board, had met the Government’s wish, especially as it was evident that the board in doing so was making a considerable sacrifice financially. The reduction, which "would apply to loans already in existence as well as to loans granted after May 1, would be made in respect of loans made under all three of the board’s lending methods, namely—Loans to farmers through cooperative rural intermediate credit associations under Part II of the Rural Intermediate Credit Act; loans direct to farmers under Part 111 of the Rural Intermediate Credit Act; loans to farmers on the security of endorsed promissory notes, usually called the board’s discounting system. Mr. Forbes added that he had been informed by the Commissioner of Rural Intermediate Credit that the board had adequate funds with which to meet all reasonable demands which it was anticipated would be .made by farmers during the coming winter, and that those who were in need of finance and could satisfy the board’s requirements should make early application to the nearest co-operative rural intermediate credit association or branch office of the board, where full information and every assistance would be available.