LOAN CONVERSION

King Country Chronicle, Volume XXXIII, Issue 4816, 28 July 1939, Page 4

LOAN CONVERSION

TERMS OF REPAYMENTS.

SPREAD OVER FIVE YEARS. *

Applications are invited for £16,000,000 of New Zealand conversion stock, 1939-45, at £99, the first payment of £1 15s for which will be made on January 1. Holders of the 1940 stock may exchange their holdings, receiving a cash payment of £1 per £IOO. The lists will close on August 5.

The interest rate> is Bh per cent', payable on January 1 and July 1. New Zealand underakes to provide for redemption from sterling funds accruing from exports, sufficient for instalments of £2,000,000 in 1940, and £3,500,000 in each of the four following years. The deficiency of £1,000,000 between the amount of the conversion loan and the £17,000,000 due will be paid out of New Zealand's accumulated sinking funds. "The rather onerous tei'ms for repayment of the conversion loan are believed to be well within New Zealand's powers, since it is possible on the present restriction of imports to save £10,000,000 sterling a year after 1939," says the London Financial News.

"British exporters who hoped for an early relaxation of the restrictions are likely to be disappointed." Mr. Nash has not yet fixed the date for his leaving England.