HIGHER INTEREST

Grey River Argus, 22 November 1939, Page 2

HIGHER INTEREST

LOCAL BODY LOANS. CHRISTCHURCH, November 21. , The majority of the local authorities in the city have benefited considerably through the raising of the interest rate on local body transactions. In May of this year the Government raised , the rate to_4j per cent., Before the rate was raised,

local authorities were finding it extremely difficult to secure buyers for their debentures and many had had to fall back on bank overdraft for accommodation. This procedure inevitably involved higher charges. It has been found, so officials say, that there is plenty of short-term money about in the city at the new rate and no local authorities are. having difficulty in placing their debentures and getting money. i n f ac j new issues a re being pencilled in well before the date of Issue,