SATISFACTORY TERMS
New Zealand has reason to be gratified with the terms for the London conversion loan. At an issue price of £97 with interest at 34 per cent, redeemable in 25-30 years it is slightly more favourable to the borrower than the latest Australian conversion, which was issued at £98 with interest at 3'l-per cent, redeemable in 15-20 years. The saving to! New Zealand will be considerable' as the loan at present costs £6 Is 3d, though die nominal rate is 5 per cent. Unfortunately New Zealand cannot go much further "in reducing iriterest rajtes /on her external debt. There is a loan of £4,000,000 with interest at 4$ per cent, due for redemption, but after that the Dominion must await other maturity dates. Before Mr. Forbes went to London he apparently entertained hopes of securing some concession on the unmatured debt, but since his ■ return he has said nothing on the subject. We did not share such hopes, for the British investor still views a contract as a contract, and is not of the same opinion as a member of the Southland Power Board that the terms can be. easily altered, no matter what may be done with the internal debf.
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Bibliographic details
Evening Post, Volume CXVI, Issue 83, 5 October 1933, Page 10
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203SATISFACTORY TERMS Evening Post, Volume CXVI, Issue 83, 5 October 1933, Page 10
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