INTERNAL LOAN

Dominion, Volume 29, Issue 199, 20 May 1936, Page 11

INTERNAL LOAN

£9,000,000 to be Raised in Australia (Received Mny 19, 9.40 p.m.) • Canberra. May 19. The Australian Loan Council requested the Commonwealth Bank Board to underwrite an internal loan of £10,000,000 to be floated immediately to meet the requirements of the Commonwealth and State Governments in the early months of the coming financial year. The board, after considering the Loan Council’s request, offered to underwrite a loan of £9,000.000. The Loan Council then decided to repeat its request for a £10,000,000 loa i. However, the Loan Council later agreed to the Commonwealth Bank Board’s offer to underwrite an immediate internal loan not exceeding £9,000,000, which will serve the requirements of the State Governments in tlie early months of the coining financial year. The Commonwealth Government will proceed to raise that amount upon the following terms: Price of issue, £9B 10/-; interest, 3} per cent.; maturity. 15 years. Although the details of the estimated deficits of the State Governments at the end of the current financial year which have been placed before the Loan Council have not yet been made public. it is believed that the figures will show the deficits to be as fol-low-—New South Wales, £1,750.000; Victoria £300,000; Queensland, £1.150.000: Tasmania, £222,000. South Australia anticipates a balanced Budget, and Western Australia a surplus of between £50.000 and £lOO,OOO, and the Commonwealth Government a surplus of not less than £4.000,000.