N.Z. LOANS IN LONDON

Manawatu Standard, Volume LXV, Issue 22, 23 December 1944, Page 5

N.Z. LOANS IN LONDON

REPAYMENT OR CONVERSION? (Special Correspondent.) LONDON, Dec. 22. Little attention so far has been attracted by the two New Zealand loans which have to be "repaid next year, says the Financial News. They are £7,500,000 of 4$ per cent, stock, • and £9,500,000 of 3 per cent, stock. The market is wondering what the procedure will be.-

"When attempting to access the prospects of conversion or repayment, one naturally thinks first of the amount of cash there is in hand," the journal adds "The New Zealand overseas assets total about £35,000,000, a rise of £7,600,000 over the year. Assuming, which seems fair enough, that the bulk of this consists of sterling, there would-be plenty of money for the cash payment of both issues. "All the same, there are a number of possible reasons why a cash repayment should not be undertaken. The present level of the sterling balances is due to abnormal wartime circumstances. We have made bulk purchases of New Zealand's primary produce, but New Zealand has been unable to get many of our goods in return. After the war the Dominion may require much of the money for restocking purposes. "Again, the financial arrangements between this country and New Zealand have not reached finality. In November it was mentioned in the House of Commons that the payment of sums due to the United Kingdom of up to £18,000,000 might be deferred for subsequent adjustment. That suggests that conversion is more probable."

The Minister of Finance (Mr Nash) in a statement last night, said that the subject referred to in the cable message had been under consideration and negotiation for some time, but it was unlikely that any further statement would be made till the arrangements in connection with the loans referred to had been completed.