LOCAL BODY LOANS

Greymouth Evening Star, 4 July 1933, Page 2

LOCAL BODY LOANS

INTEREST RATES FIXED

[PEB PRESS ASSOCIATION.]

WELLINGTON, July 3. In connection with the recent decision of the Government to reopen over-the-counter sales of goveinment per cent, bonds., Mr Coates, to-day made reference to the position in regard to the current issues of local body securities. ' Mr Coates stated that the Local Government Loans Board was closely cooperating with the Government in the matter of interest rates, and he had been advised that the Board, at its meeting held on June 27, decided that the rates of interest on the local body loans sanctioned at that meeting, and to be dealt with in future, should be restricted to a maximum rate of 4 per cent, for the “best local authorities.” The board, recognising that all local authorities cannot be expected to place their loan requirements at this rate, decided upon an intermediate rate of 41 per cent, for second class local authorities, and 4i per cent, for smaller local authorities. This approximately, preserves a distinction which had always existed between the securities of local authorities of various classes. Mr Coates concluded by stating that he felt confident that the local authorities would experience little difficulty in fulfilling their loan requirements at the rates now decided upon by the Board. In fact, there was evidence that, prior to the meeting of the Board some loans had been arranged on the lower basis decided upon.