LOAN AGREEMENT

Evening Star, Issue 23324, 21 July 1939, Page 10

LOAN AGREEMENT

N.Z. Sets £5,000,000 to Finance Imports

Also Export Credits £4,000,000

Conversion Negotiations Still Proceeding

[From Our Parliamentary Reporter.]

WELLINGTON, July 21

The Prime Minister announced to-day that the British Government had consented to provide New Zealand with £5,000,000 to finance imports, and also short-term export credit facilities amounting to £4,000,000.

Mr Savage added that the negotiations in connection with the conversion loan of £17,000,000 were proceeding satisfactorily, according to advice received from Mr Nash. He said the British Government had agreed that the facilities of the Export Credits Guarantee Department' he made available to assist in financing imports of United Kingdom origin, and that credits up to £5,000,000 be made available under approved conditions for purchase by the New Zealand Government.

** Short term export credits facilities up to an amount of £4,000,000 will also be made available under suitable conditions to cover approved exports from the United Kingdom to importers in New Zealand, other than the Government,” said Mr Savage. “ This means that importers holding licenses can be assured that, provided they pay the equivalent in New Zealand currency for imports, at the date due, the obligation to pay the United Kingdom exporter in sterling will be accepted by the New Zealand Government as sterling funds are available. The United Kingdom Government Exports Credits Guarantee Department has made arrangements under which United Kingdom exporters will be protected by means of a guarantee which will ensure their receiving sterling at the expiry of a reasonable period from date of payment by New Zealand.”