LOANS TO CITY COUNCIL
Savings Bank’s Offer Accepted INVERCARGILL WORK Bv Telegraph—Press Association. Invercargill, May 27. An offer by the Invercargill Savings Bank to lend the Invercargill City Council at 31 per cent. Interest money required for its works programme, for the first year, £55,000, was accepted by the council at a special emergency meeting this evening. It was agreed also that the Invercargill Savings Bank should be given the first opportunity of lending moneys required for the remaining two years of the term o.f office of the council. The amount of money required, including £55,000 for the first year, is £117,500. Tire mayor, Mr. John Miller, and councillors described the offer as a very good one.
Negotiations had been in progress with the Invercargill Savings Bank for some time, said the town clerk, Mr. W. F. Sturman. All local bodies of New Zealand had been limited by the Local Government Loans L ard to paying 3J per cent, for their moneys and most of them had had the utmost difficulty in obtaining money at such a low figure. The Invercargill Savings Bank had acted very generously, however, and had offered money to the city at. 3i per cent., some for a period of 30 years and some for 20 years. The terms were generous and there would be no sinking fund. All that was asked was a flotation charge of- one-half P£T cent, to provide for the cost of raising the loan, including legal fees. The mayor: I consider it a very good offer. The way of paying it back is by means of principal and interest, a very good way of repaying loans. There is no sinking fund and the money is being raised in Invercargill. Cr. A. W. Jones said be thought it was a wonderful offer. Cheaper interest could not be foreseen, anywhere.
“It speaks volumes for the' soundness of the city and its solidity financially,” said the town clerk after the meeting. “The arrangement particularly appeals in that the money paid in interest will be circulated in Invercargill,”
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Bibliographic details
Dominion, Volume 31, Issue 206, 28 May 1938, Page 15
Word Count
343LOANS TO CITY COUNCIL Dominion, Volume 31, Issue 206, 28 May 1938, Page 15
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