EARTHQUAKE LOANS

Evening Star, Issue 23123, 24 November 1938, Page 12

EARTHQUAKE LOANS

THE MINISTER’S RECOMMENDATION INTEREST PAYMENTS TO BE CREDITED TO PRINCIPAL [SPECIAL TO THE ’ STAR.') WELLINGTON, November 24. Earthquake rehabilitation Joans were fully discussed with Mr Nash, Minister of Finance, by representative deputations ot the Hawke’s Bay Hospital Board, the Hawke's Bay Rivers Board, and the Wairoa Harbour Board. The Minister, after hearing the pica of the hospital board for special consideration, made an important statement regarding his proposals in respect to outstanding loans of local bodies. After referring to the interestfree concession, he asked; “Is there any further relief which ought to bo given to the local authorities of the earthquake area? ” “ One thing I can commend to the Government,” he continued, “ is that the existing arrangements (be continued in regard to loans, and that repayments be made, hut that all repayments, interest and principal, be credited to principal. That means that they get them interest free, and that instead of being a.30-year loan, it will he an 18-year period, because the sums paid for interest will be applied to repayment of the principal. I have thought out whether wo can afford to go that way. I will try to deal with the question this week, and it will have to be discussed with Cabinet. I think that is fair, taking all the circumstances into account. I cannot talk about being generous, because I would have to go hack to 1932, and that’s not practicable.”